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Extracting Actionable Takeaways From The SEC’s Staff Bulletin Regarding An RIA’s Standard Of Care

Nerd's Eye View

There is a general understanding that investment advisers have a fiduciary relationship with their clients – in other words, that they are required to act in the client's best interests. These 3 components in practice make up a core part of the adviser's fiduciary duty to their clients.

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When Are Advisors (Financially) Liable For Negligent Investment Advice? (And Who Pays For It)

Nerd's Eye View

For example, if an advisor recommends an investment that prioritizes the commission they would receive rather than any benefit the client would derive from it, they could incur fines and sanctions for violating their fiduciary duty as an advisor.

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Fiduciary Papers #7: What Steps are Required to Properly Manage a Conflict of Interest Held by An Investment Adviser?

Ron A. Rhodes

While the SEC has provided an interpretative release [SEC Release IA-5248, Commission Interpretation Regarding Standard of Conduct for Investment Advisers (July 12, 2019)] regarding the fiduciary duties of investment advisers,…

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Fiduciary Papers #14: It’s Time to End Commissions and Revenue Sharing

Ron A. Rhodes

It is possible that all commission-based compensation involving the sale of investment products, life insurance products, and annuities could be eliminated. And it would be right and just to do…

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How to Choose a Personal Financial Advisor

Park Place Financial

They register with the United States Securities and Exchange Commission ( SEC ) to gain the designation. . A key indication of an advisor’s dedication to acting in the client’s best interest is the mention of fiduciary duty. Some advisors do not observe fiduciary duty but are bound to a suitability standard.

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How to Lower Your Financial Advisor Expenses

WiserAdvisor

For example, some advisors are paid via commissions on the sale of financial products like stocks, mutual funds, policies, etc. A commission-based financial advisor earns a commission based on the financial products they sell. Ensure that the financial advisor is bound by fiduciary duty.

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What does it mean to be a Fee-Only financial advisor?

Walkner Condon Financial Advisors

In contrast, a commission-based financial advisor receives commissions or other forms of compensation from financial product providers for recommending and selling their products. This can make it difficult for investors to fully understand the potential conflicts of interest that may exist when working with a commission-based advisor.