Broker Check

Video - My Fiduciary Responsibility


Just recently there was a rule passed that becomes law next April, which is referred to as the DOL Fiduciary Rule. Basically the rule requires that those who provide investment advice to retirement accounts to always “act in the best interests of their clients.” I suspect that most investors, upon learning of this pending legislation, will ask in astonishment “you mean they weren’t acting in my best interest already?” Well, currently brokers have been able to operate under a less-stringent “suitability” standard that only required them to attest that the product in question was suitable for the client – with no reasonable limits on the amount of compensation a broker or adviser could receive.

If physicians, attorneys, and CPA’s all have a fiduciary duty to act in their client’s best interests, it only seems natural, if not obvious, that those who manage other people’s money should at the very least be held to an equivalent standard. As a Certified Public Accountant for the past twenty-nine years, I’ve always assumed fiduciary responsibility for both my accounting and planning functions. I’m also a CFP and a RIA, which both mandate fiduciary care. It’s the core principle of Carr Wealth Management to always act in the client’s best interest.