Choosing an advisor who is legally obligated to act as a fiduciary is a good first step.
Antonetti Capital is a fiduciary and, as such, we have the legal obligation to always put clients’ interests first. We must follow the highest known standard by law, the “trust” standard fulfilling the critical fiduciary duties of trust and confidence. There are five core principles associated with the Fiduciary Standard:
Are all financial and investment advisors held to the same standard? No. Financial Advisors ("FA’s") at traditional brokerage firms and bank brokerage operations are held to a lesser standard when it comes to their client’s interests - a Suitability Standard. As long as the products are "suitable," FAs have met their regulatory obligation. There may be higher levels of client care mandated by the FA's sponsoring broker/dealer but, absent those, the minimum threshold that an FA must meet when recommending securities to clients is one of suitability. And while an FA may choose to adhere to higher standards, RIA’s remain the only advisors that are legally obligated to do so. We don’t think “suitable” is good enough. We believe investors want, and deserve, better. As a fiduciary, we embrace the fact that as an investment advisor we sit on the same side of the table as the client – where the interests of our clients always come first.
- Put the client’s best interests first
- 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 important facts
- Avoid conflicts of interest
- Fully disclose and fairly manage, in the client’s favor, unavoidable conflicts