WE Family Offices Endorses Investor Bill of Rights
June 17, 2016
The Institute for the Fiduciary Standard has launched its Campaign for Investors in an effort to raise awareness of the Fiduciary Standard and in light of the recently passed DOL fiduciary rule on retirement plans. The group, while acknowledging that the legislation is but a first step in the right direction, has launched the Campaign For Investors to provide resources and information to investors seeking a financial advisor, or asking questions about the financial advice they are receiving.
Investors today often don’ t know how much they pay in investment fees because the information is buried in the small print or because they are given poor advice by advisors who receive compensation for particular sales recommendations. This is unfair and in some cases investors are losing significant returns over time to high investment costs. Visitors to the Campaign’s site can get help determining the true cost of their investments and learn whether they are low, reasonable or high with the help of FeeX.com. In addition, the Campaign website offers a number of interesting tools for investors to:
- Learn if their advisor is working in their best interest;
- Learn if other investors have complained about their advisor;
- Learn what they are now paying, even if the advice seems free; and
- Determine if they would be better served by a different financial advisor.
As part of the Campaign, the Institute has also created the Investor Bill of Rights, which is based on the Institute’s Best Practices for Financial Advisors and outlines what investors should be able to expect from their financial advisors. From the Campaign’s website:
“I expect that my fiduciary advisor:
- Meets the highest standards and puts my interest ahead of his/her own at all times.
- Understands my circumstances, needs, goals and risk tolerance.
- Puts our agreement in plain writing that includes an investment policy statement or process that reflects my goals and philosophy.
- Provides communication that is timely, truthful, complete and understandable so I am well informed. Puts important agreements in writing.
- Gives me advice that is objective and unbiased and based on my needs.
- Is educated and credentialed in personal finance and investing, dedicated to professional education and experienced in advising investors like me.
- Reports regularly on my investments’ performance, the fees and expenses I pay and the fees the firm receives as a result of advising on my portfolio. On request, provides written records that explain any recommendations.
- Avoids conflicts of interest. If a conflict is unavoidable, the advisor discloses the conflict, discusses it with me and manages it for my benefit.
- Avoids receiving payments from other parties (like mutual funds). If unavoidable, the payment is either credited to me or managed for my benefit.
- Controls investment expenses so the fees and expenses I pay are reasonable.”
The Campaign for Investors has generated significant attention from the press, as can be seen in these articles from the national financial media.Chicago Tribune: Fiduciary Rule Can’t Come Soon Enough For Investors
Financial Planning Magazine: Fiduciary Rule Won Support From a Surprising Contingent
Fiduciary News: New Fiduciary Rule Is Just the Beginning
The Campaign is not affiliated with any financial firm, advisory firm, or professional association. The Institute is a non-profit group which is solely dedicated to promoting the importance of the fiduciary standard in the financial advisory community and to the public. The not-for-profit group seeks to:
- Help investors evaluate financial advisors
- Help investors calculate their investment costs
- Help clients understand their rights as investors
The group hopes to inspire and empower investors to seek advice they can trust from a financial professional who puts the investor’s interests above the advisor’s.
For more information on the Campaign for Investors, or the Institute for the Fiduciary Standard, please visit www.
campaignforinvestors.org.
