FIDUCIARY VS. SUITABILITY

Deciphering the “What’s What” and “Who’s Who” of today’s complex financial services industry can be difficult, even for the most financially sophisticated members of the general investing public. Two words: Fiduciary and Suitability are critical in understanding the motivation behind the person offering you financial products or advice.

Recognizing the difference between the Fiduciary and Suitability standards may also help you to appreciate the level of care you receive from a trusted financial advisor. Though the distinction between the Fiduciary and Suitability methods of offering advice is rarely discussed by “broker-led” large financial companies, we feel it is essential for investors to know the difference.

HINDSIGHT ASSET MANAGEMENT believes the Fiduciary model of disclosure and transparency is the “best interests of all client.”

Broker (The Suitability Standard Used by Large Financial Institutions)
Offers “Suitable Advice” of products for sale from a range of products carried by the company he or she represents while often ignoring “Better” products available in the “Universe” of all available financial products offered for sale.

Is paid commissions or management fees calculated as a percentage of the amount of money invested.

Advisor (The Fiduciary Standard Used by Many Independent Financial Advisors)
Offers “Best Advice” taking into account the needs of each individual client, evaluating and using all available financial products in the “Universe” of all available financial products for sale.

Is paid commissions or management fees calculated as a percentage of the amount of money invested.

Relates to the standard of care upon which financial advice is provided to the investing public:

  • The Fiduciary Standard requires advice to be provided in the best interests of the client including the disclosure of possible conflicts of interest.
  • Today’s financial industry offers its clients a wide range of options. In our eyes, every client deserves to have their needs put first and solutions offered according to those needs.
  • HINDSIGHT ASSET MANAGEMENT can help you to understand these options and work with you to decide how they might impact your specific financial needs.

Interested with this service.