The Fiduciary Standard

To All Who Give Investment or Financial Advice:

We believe the future well-being of the nation requires that all Americans make better financial choices. As investing has become more complicated, the role of advisors has become more vital. Investment Company Institute research found 73% of investors consulted a professional financial advisor before investing in a mutual fund. Unfortunately, not all financial advisors are required to be fiduciaries, who, by law, must put the client’s best interest first.

Therefore, we believe that those who render investment or financial advice must meet the requirement of the Fiduciary Standard, as established in the Investment Advisers Act of 1940 and affirmed by the US Supreme Court.

The fiduciary requirements of the Advisors Act are well established in case law, regulations and regulatory interpretive letters. The key overriding mandates are highlighted in five core principles. These principles are:

1. Put the clients best interest first
2. Act with prudence; that is, with the skill, care, diligence and good judgment of a professional
3. Do not mislead clients; provide conspicuous, full and fair disclosure of all important facts
4. Avoid conflicts of interest
5. Fully disclose and fairly manage, in the client’s favor, any unavoidable conflicts

The Fiduciary Standard: Putting Investors’ Best Interests First.