Institute for the Fiduciary Standard: Why Choose a Fee-Only Fiduciary Advisor?

June 25, 2020

The Institute for the Fiduciary Standard, a non-profit organization whose purpose is to promote the importance of the fiduciary standard for investors, has recently released a commentary for families explaining the benefits of choosing a fee-only fiduciary advisor.

According to the Institute, families benefit greatly from a fee-only fiduciary relationship.

“Fee-only fiduciary advisors can be more candid, clear and transparent about what they do, what they charge and what you get,” the publication explains. “Advisors often look alike – but they don’t act alike. What they do can be as different as night and day.”

While most advisors say they put their clients’ interests first, that does not automatically make them a fiduciary – and this can cause great confusion for families seeking financial advice from a fiduciary advisor. The Institute’s e-book clarifies the established duties of Real Fiduciary™ Advisors, which follow the Real Fiduciary™ Code of Ethics:

1. Serve our clients as fiduciaries at all times.
2. Only accept compensation paid to us by our clients.
3. Disclose clients’ fees and expenses in writing.
4. Avoid conflicts to the best of our ability.
5. Disclose and explain important information and agreements verbally and in writing.
6. Maintain our designations with ongoing education of knowledge and skills.
7. Provide advice based on clients’ goals, circumstances, concerns, and tolerances for risk.

The published commentary also encourages families to have their advisors sign the “Real Fiduciary Advisors Code of Ethics,” found here.

As a fee-only fiduciary advisor and active supporter and co-founder of the Institute for the Fiduciary Standard, WE Family Offices stands out among many industry peers. Since our founding, we have built our firm on the guiding principles of the fiduciary standard, and we continue to do so today by actively executing the Real Advisor Code of Ethics throughout our business. 

Read the entire Institute for the Fiduciary Standard e-book here.