Why a Fiduciary?

What is a fiduciary?

A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties.

When selecting a financial advisor you want to be sure you’re working with a fiduciary, someone that is bound to act in your best interest first.

All members of the Christian Financial Advisors Network must operate as fiduciary advisors in all aspects of their practice at all times.

The Fiduciary Rule

Per the Financial Planning Coalition, “The fiduciary standard of care requires that a financial adviser act solely in the client’s best interest when offering personalized financial advice.”

All members of the Christian Financial Advisors Network operate as fiduciary advisors AND strongly believe in the fiduciary standard of care as the gold standard for the financial planning profession.

You can find out more information regarding the fiduciary standard of care at the Financial Planning Coalition’s website.

Who abides by the fiduciary standard of care?

According to the Investment Advisers Act of 1940, investment advisers are regulated by the Securities and Exchange Commission (SEC) or appropriate state authorities and are required to provide services to their customers under the fiduciary standard. Furthermore, CERTIFIED FINANCIAL PLANNER™ professionals that provide financial planning services must also abide by the fiduciary standard of care, as defined by CFP Board.

Broker-dealers are also regulated under federal law, including under the Securities Exchange Act of 1934, but are not required to provide services to their clients under the fiduciary standard. Instead, broker-dealers provide services under “Regulation Best Interest” which is an attempt to make conflicted brokers more fiduciary-like. This has further muddied the water, especially for consumers. When in doubt, ask your financial advisor if they operate by the “fiduciary standard of care” and ask to see their fiduciary oath.

Why is this important?

Countless individuals are harmed every year by financial advisors not acting in their best interest. This is why the financial services industry has such a poor reputation. A uniform fiduciary standard that applies to all financial professionals who give personalized advice is necessary in order to protect consumers AND raise the quality of the profession.

But until then, be sure to do your due diligence in finding a fiduciary advisor.

You can rest assured that every advisor in Christian Financial Advisors Network is a fiduciary advisor.