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How the fiduciary standard protects you

You may have heard media reports about a new fiduciary rule for retirement accounts that the Trump administration is trying to rescind. Understandably, you have questions about how this might impact to your accounts. The rule was designed to ensure recommendations made by financial advisors to their clients regarding their retirement accounts are always made in the best interests of the client without any conflicts of interest. This rule was set to go into effect in April, but that is being delayed by 180 days and may be killed entirely.

The good news is that doesn’t affect Runnymede client accounts at all. As a Registered Investment Advisor, we are already under the highest fiduciary standard – so enacting the rule or rescinding it doesn’t change our status. We have had this higher standard in place for our entire history and will continue to do so. It’s always been part of our DNA. If you aren't our client, is your advisor held to the fiduciary standard? If you don't know the answer, you should definitely ask.

The bad news is that we believe that delaying or removing the fiduciary rule for retirement accounts is a step in the wrong direction for the industry and more importantly for investors. Investment profesionals should do what is right for their clients, especially when it comes to their retirement funds. Unfortunately, brokers and advisors that aren't held to the fiduciary standard are paid referral fees and/or commissions for products that aren't always in the best interest of the client. The net result is that many Americans will be left with less money for retirement.

As your financial advisor, we have been serving you as a fiduciary all along

A “fiduciary” who manages an investor’s assets has a legal and ethical obligation to put the investor’s interests first. That means helping the investor make decisions in his or her best interests. This fiduciary standard has always been at the core of our firm’s mission to our clients.

Here’s how we protect you and your investments:

  • We always put your needs first. We are committed to the highest professional and personal standards, and this commitment remains as strong as ever. Our sole focus is on your financial needs and goals and how we can best help you pursue them.
  • We always act in your best interests. We are committed to putting your needs and goals before those of our firm. We strive to avoid any conflicts of interest and never sell commissioned products. We provide a high level of transparency around any fees or expenses associated with your accounts, so that you always know what you own and what you’re paying for it, so there are never any surprises.
  • We are an independent and objective resource. As an independent firm, we provide you with objective, unbiased advice based solely on your needs and goals. We provide guidance that is truly objective, unencumbered by any potential conflicts of interest. Our only interest is that your financial objectives are met.

Our commitment to you

As your advisor, we adhere to the fiduciary standard, and we believe this model of disclosure and transparency is in your best interests. In our view, you deserve to have your needs put first and the strategies and investment products we recommend should align per those needs.

Our fiduciary standard mandates that every single recommendation we make must be based on your best interests, and there is no circumstance when we can place our interests above yours. By adhering to the fiduciary standard, we believe we can provide you with the highest standard of care for all your investment and retirement needs.

Safeguarding your financial dreams

When it comes to managing your money, your financial relationships should be built on a foundation of trust, integrity and transparency. Not all firms and advisors adhere to the same legal and regulatory standards. We remain committed to earning and maintaining your trust through expert advice and effective strategies custom tailored to your unique needs. We define our success by seeing you succeed in achieving your financial goals. And our focus remains on serving your interests first and foremost.

If you want to learn more about the differences between Fiduciary and Suitability standards, please read our article "Do Your Interests Come Before Your Advisor's?"

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About the Author: Chris Wang

Chris Wang

IMPORTANT DISCLOSURE INFORMATION 

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Runnymede Capital Management, Inc.-"Runnymede"), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Runnymede.  Please remember that if you are a Runnymede client, it remains your responsibility to advise Runnymede, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Runnymede is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Runnymede's current written disclosure Brochure discussing our advisory services and fees is available for review upon request. Please Note: Runnymede does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Runnymede's web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.