A Must For Every Investor….
Learn about Fiduciary Responsibility
At first a confusing term, once you know what it means, you can take better care of your money. And you can take better care of others if you are a fiduciary. Most importantly, you can ask the right questions of those who are managing your money.
Investopedia says the following:
“Under the U.S. legal system, a fiduciary duty is the legal term describing the relationship between two parties that obligates one to act solely in the interest of the other. The party designated as the fiduciary owes the legal duty to a principal, and strict care is taken to ensure no conflict of interest arises between the fiduciary and his principal.
In most cases, no profit is to be made from the relationship unless explicit consent is granted at the time the relationship begins. Fiduciary duties come in a variety of forms under the legal system, including but not limited to, trustee and beneficiary, guardian and ward, principal and agent, and attorney and client. “
Objective Views of Financial Educators
Investment and Financial folks who do act as a fiduciary do not have any issue with this law. Many organizations like the Certified Financial Planning Board are supporters of it. Good financial advice can be given without conflict of interest or high fees.
As the possibility of a law change was being discussed, Jane Bryant Quinn wrote the following piece. It is an older but clearly objective and powerful.
No matter what your politics, learn what the Security and Exchange Commission(SEC) is up to when it comes to Fiduciary Responsibility guidelines and laws.
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