Red Pine Investment Counsel Offers Fiduciary Financial Services to Help Investors Goals
Our services help our clients be knowledgeable and goal-focused investors.
fi•du•ci•ar•y – A Financial Advisor held to a Fiduciary Standard occupies a position of special trust and confidence when working with a client. As a fiduciary, the Financial Advisor is required to act with undivided loyalty to the client. This includes disclosure of how the Financial Advisor is to be compensated and any corresponding conflicts of interest.
What is a Fiduciary?
An investment fiduciary is an individual who has responsibility of the management of assets for others and is therefore in a special position of confidence, reliance, and trust. The standard of conduct for fiduciaries is considered the oldest, strongest, and most revered standard in law.
The two most fundamental duties for fiduciaries are loyalty and care. These duties form the foundation that gives rise to the specific responsibilities of investment stewards, advisors, trustees, and managers established in temporary laws and regulations. Thus, the fiduciary standard is said to be principles-based, meaning that a fiduciary’s actions must always conform to the guiding principles of loyalty and care.
Duty of Loyalty
The duty of loyalty requires fiduciaries to act in the best of interest of those they serve and to avoid properly manage conflicts of interest.
Duty of Care
The duty of care is focused on prudence and due diligence and includes well documented processes. It encompasses numerous obligations including that the fiduciary be competent. This means acting with care, skill, and diligence that a prudent professional would exercise when acting in a like capacity, under comparable circumstances. A steward who is unable to meet this standard, must delegate responsibilities to a qualified expert.
Six Key Fiduciary Duties
- Serve the client’s best interest
- Act in utmost good faith
- Act prudently – with care, skill, and judgment of a professional
- Avoid conflicts of interest
- Disclose all material facts
- Control investment expenses