Others say it — we've committed to it by law
As a Registered Investment Advisor (“RIA”), Financial Freedom House is a fiduciary. This means that we have legally obligated ourselves to put our clients’ bests interests ahead of ours and to serve clients under the Fiduciary Standard of Care.
This ethics-based standard of care is the highest standard in the financial industry and is comparable to the ethics-based standards under which doctors, lawyers, and CPAs operate.
Serving as fiduciary means that we adhere to the following principles:
- Act with undivided loyalty to, and in the sole and exclusive best interest of our clients.
- Disclose how we get paid and the amount we receive.
- Avoid conflicts of interest, and if unavoidable, resolve them in the client’s favor.
- Act with prudence, that is, with the skill, care, diligence, and good judgment of a professional.
- Do not mislead clients; provide conspicuous, full and fair disclosure of all the facts they need.
Our fiduciary approach is in stark contrast to the rules-based Suitability Standard of Care under which most brokers and agents in the financial services industry operate.
The less stringent Suitability Standard care permits brokers, agents, and their firms to place their self-interests ahead of their clients’ best interests so long as all the boxes can be checked off and the product being sold is “suitable” (a.k.a. good enough). Examples of this is seen in the emphasis some firms place on the use of proprietary products which pay a higher commission and sales contests used to incentivize brokers and agents.
For more information visit the website for The Committee for the Fiduciary Standard at TheFiduciaryStandard.org.