Registered Investment Advisor vs. Broker
What’s the Difference and Why Does it Matter?
Cornerstone Financial Solutions, Inc., Fiduciary Standard
Our fiduciary obligation to you, our client, is something we take very seriously. The advisors at Cornerstone Financial Solutions work as fiduciaries when providing you advice and managing your money...
Fiduciary standards are the obligation, responsibility, and commitment to put your interests ahead of our own in everything we do. While it's a legal standard, we view it as a moral obligation that we have been providing for more than 10 years. Our belief system has always been to do what is in the best interest of clients which is the true definition of being a fiduciary. Learn more about the Fiduciary Standard.
The Department of Labor (DOL) recently finalized a rule (April 6, 2016) that requires all retirement advisors to operate under a fiduciary standard, meaning the advisors must act in their clients' best interest when providing advice.
In light of this new rule, which went into effect June 9thm 2017, Cornerstone Financial Solutions CEO and Founder, Gordon Wollman - MS-Financial Planning, CFP®, sheds some light on the subject.
Q: Are the advisors at Cornerstone Financial Solutions Fiduciaries?
A: Yes. A fiduciary is an advisor who is required to act in your best interest. The federally regulated fiduciary standard requires advisors to act in good faith, provide full disclosure of fees, commissions and potential conflicts of interest. Advice from our advisors is conflict-free and is never related to the possibility of earning a potential commission.
Q: What is the philosophy and mission at Cornerstone?
A: Our advisors abide by the fiduciary standard based on integrity rather than a requirement. It is our mission to earn our clients life-long trust by helping them simplify their lives and make wise financial decisions, delivered by an accomplished, customer-centric and financially astute team.
Q: Will the fiduciary rule change the products and services you offer to clients?
A: No. As fiduciary advisors, we don't offer products designed to generate unnecessary or excessive fees. Our advisors offer comprehensive financial planning and make investments that are consistent with your risk tolerance and goals.
Q: How does the fiduciary standard affect your relationship with clients?
A: Because our advisors have always operated under the fiduciary standard, our relationship with our clients really won't change. We continually monitor our client's investments along with any changes in personal financial situations such as; risk tolerance, unexpended medical expenses, health decline or changes in client's priorities and goals that may cause a need for change in direction.
Q: What are the pros of the new DOL ruling for investors?
A: The DOL ruling will require greater transparency for investors so they understand what they are paying for. The rule is positive for the average investor, as it puts the investor and advisor on the same side of the table. Many of our clients come to our firm in search of increased communication and clarity of information, which helps investors to make informed and educated decisions.
The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Gordon Wollman and not necessarily those of Raymond James. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.