Fiduciary Financial Advisors in Minneapolis, MN operate under a fiduciary standard. They hold a position of trust and are required by law to operate in the best interest of the client.
A fiduciary financial advisor in Minneapolis, MN should exhibit the following traits.
- Trust
Clients should be able to trust their financial advisor. Fiduciary financial advisors in Minneapolis MN are obliged by law to always act in the best interest of their clients. They must offer financial advice based on a fiduciary standard of care. Not all advisors are held to this standard. Some advisors adhere to the suitability standard. They are not obligated to provide advice that is in the best interest of their clients, only advice that is suitable. Trust is enhanced with financial advisors who have a fiduciary standard of care because they work solely in the client’s best interest.
- Loyalty
Fiduciary advisors who are loyal will not be swayed by outside forces that will influence their recommendations. They do not sell financial products such as mutual funds, annuities, or insurance. Therefore, they do not receive commissions or other compensation from the sale of such products. They do not have the inherent conflicts of interest that afflict advisors who sell products. Fiduciary Financial Advisors in Minneapolis, MN work solely on behalf of their clients, building a relationship of loyalty.
- Disclosure
Clients should know how their financial advisor is compensated. They should also be informed about any conflicts of interest that may hinder their advisor’s ability to be independent. Fiduciary financial advisors in Minneapolis, MN must disclose all know conflicts of interest. Other types of advisors, such as brokers do not have this requirement.
