Matters
A financial advisor held to the Fiduciary Standard occupies a special position of trust and confidence when working with a client. As a Fiduciary, the advisor is required to act with undivided loyalty to the client. Registered investment advisors (RIA’s), like Boston Standard, are held to the Fiduciary Standard by federal law. As such, we are legally bound to act exclusively in our client’s best interest and to structure our compensation accordingly.
Only a small number of financial advisors are Registered Investment Advisors. Most advisors are held to a standard of care called “suitability.” These advisors are required by law to act in the best interest of their employer, not in the best interest of their client. The resulting conflicts of interest have been well documented.
We’re hopeful a Department of Labor ruling that all advisors should act as fiduciaries will become law and begin to repair decades of damage that conflicted advisors have caused the profession.
| Type of Professional | Fiduciary? |
| Physician | Yes |
| Attorney | Yes |
| Stock Broker | No |
| Insurance Agent | No |
| Registered Representative | No |
| CFP® Practitioner | Unknown |
| Financial Planner | Unknown |
| Registered Investment Advisor | Yes |