Financial advisors and brokers differ in terms of the duty that they owe their clients. Brokers must comply with the suitability standard, which requires that brokers recommend investments that are suitable for their clients. Certain types of financial advisors must adhere to the fiduciary standard, a much higher standard of care.
According to Black’s Law Dictionary the Fiduciary duty is:
“A duty to act for someone else’s benefit, while subordinating one’s personal interest to that of the other person. It is the highest standard of duty implied by law (e.g., trustee, guardian)"
We operate as fiduciary in two capacities:
First, Kompass Financial Advisors, Inc., as a Registered Investment Advisor operates under the Investment Advisors Act of 1940, which requires a fiduciary duty to clients.
And secondly, Josh Taylor as a Certified Financial PlannerTM under the rules of the CFP Board’s Code of Ethics and Standards of Conduct must act in a fiduciary capacity.
The CFP Boards Fiduciary Duty states:
“At all times when providing Financial Advice to a Client, a CFP® professional must act as a fiduciary, and therefore, act in the best interests of the Client”.
As a fiduciary, Josh’s duty to put his client’s interest first. Kompass Financial Advisors, Inc., as a Registered Investment Advisory firm, must always act as a fiduciary. The fiduciary standard is the highest standard of care for financial advisors.