What is a fiduciary?
In order to understand the difference between fiduciaries and non fiduciaries we should look at how brokers and Registered Investment Advisors (such as Thompson Creek) are regulated:
Brokers are subject to FINRA Conduct Rule 2310(a) which reads:
In recommending to a customer the purchase, sale or exchange of any security, a member shall have reasonable grounds for believing that the recommendation is suitable for such customer upon the basis of the facts, if any, disclosed by such customer as to his security holdings and as to his financial situation and needs.
Registered Investment Advisors such as Thompson Creek Wealth Advisors are required to act as fiduciaries in the area of investments:
A fiduciary duty is an obligation to act in the best interest of another party. A fiduciary obligation exists whenever the relationship with the client involves a special trust, confidence and reliance on the fiduciary to exercise his discretion or expertise in acting for a client. A person acting in a fiduciary capacity is held to a high standard of honesty and full disclosure in regard to the client and must not obtain a personal benefit at the expense of the client.
Of course that only applies to investments. What about other areas such as insurance? Generally even Registered Investment Advisors are not required to be a fiduciary in other areas. We feel it is important that we structure our services so that we can act as fiduciaries in every aspect.
There are five major responsibilities a fiduciary has when it comes to clients. They are:
- To put clients' interest first;
- To act with utmost good faith
- To provide full and fair disclosure of all material facts;
- Not to mislead clients; and
- To expose all conflicts of interest to clients.
Unfortunately, even in investing, some conflicts of interest are neither eliminated nor disclosed. We believe in order to best achieve a true fiduciary standard in all your financial dealings as many conflicts of interest as possible should be eliminated. Perfunctory disclosures of conflicts are not adequate.
We strive to do this in all areas where we give advice. Click on each link for an explanation about how we are fiduciaries in:
If you’d like to talk further with us about your unique situation, please contact us today. There is no charge for any initial discussions.
We’d love to have the opportunity to meet with you and see if Thompson Creek Wealth Advisors is a good match for you. We provide a free, no-obligation get-acquainted meeting to all potential clients. Please call us at 225-302-8946 or complete our contact form to schedule an appointment.