Embracing the Fiduciary Standard
Federal law requires that SEC Registered Investment Advisors be held to a Fiduciary Standard. This means that an advisor must act solely in the best interest of the client, even if that interest is in conflict with the advisor's financial interest. Investment Advisors must disclose any conflict, or potential conflict, to the client prior to and throughout a business engagement. Investment Advisors must adopt a Code of Ethics and fully disclose how they are compensated.
Unfortunately, only a small proportion of "financial advisors" are federally or state-registered Investment Advisors. Most financial advisors are considered "Broker-Dealers" by the United States Securities and Exchange Commission (SEC). They are held to a lower standard of diligence on behalf of their clients. In fact, they must be "fair and suitable" in their recommendations, but have no legal obligation to put your interest ahead of their personal or firms interest.
Morris Financial Concepts, Inc, has always embraced the Fiduciary Standard. Putting our clients best interest first isn't a legal burden on us; it is a logical extension of the relationship we build with each client.
For additional information on the importance of the fiduciary standard, please visit the external links below: