Fiduciary Standards
A Fiduciary is defined as one in a position of authority who obligates their self to act on behalf of another and assumes a duty to act in good faith and care, candor, and loyalty in fulfilling their obligation.
In practical terms, a fiduciary relationship represents the highest standard of care imposed by either equity or law. A fiduciary owes a duty of loyalty to whomever services are provided and is expected to be above reproach in carrying out their duties. They must not put their personal interests before their clients, and they may not profit from their position as a fiduciary without the consent of the person to whom they have pledged their fiduciary duty. Furthermore, the SEC’s Office of Compliance Inspections and Examinations identifies five responsibilities of fiduciaries:
- To put clients’ interests first;
- To act with utmost good faith;
- To provide full and fair disclosure of all material facts;
- Not to mislead clients; and
- To expose all conflicts of interest to clients.
Beaird Harris openly embraces its role as a fiduciary advisor and takes pride in knowing that our clients can trust our advice and know it is appropriate for them specifically.
CEFEX Certification
The Centre for Fiduciary Excellence, also known as “CEFEX,” is an independent organization that confirms and certifies an advisor’s adherence to fiduciary standards. We are among the first Investment Advisors in the country to successfully complete the certification process.
While CEFEX is not exactly a household word for investors, it is the gold standard to ensure that an advisor adheres to the highest fiduciary standards in the industry. This achievement is indicative of Beaird Harris’s continuing commitment to act on behalf of our clients and to always put their interests ahead of our own. While the vast majority of brokers and planners fail to meet fiduciary standards, you can be confident that we do, as evidenced by our CEFEX certification.
Fiduciary Matters
Fiduciary Matters is a position paper that we co-authored to help our clients understand what it means to be a fiduciary, explain the components of fiduciary advice, elaborate on the causes of investment industry conflict and confusion, and propose specific ways to recognize a true fiduciary advisor.