As a Registered Investment Advisors, Pinnacle Investment Advisor, LLC is held to a fiduciary standard, meaning we go through extra steps to assure our clients that their financial issues are being looked after with the care they deserve.
Not all financial professionals are fiduciaries. Brokers, also known as registered representatives, are only held to a suitability standard, which requires that the broker make recommendations that are suitable based on a client’s personal situation, but the standard does not require the recommendation to be in the client’s best interest
Key characteristics of an investment fiduciary include:
- Legal Responsibility: They are legally bound to act in the best interests of their clients or beneficiaries. This duty is typically outlined in laws or regulations governing financial advisors, trustees, and other professionals who manage investments on behalf of others.
- Prudent Management: Fiduciaries are required to exercise prudent judgment and diligence when making investment decisions. This means they must consider the risks, rewards, and suitability of investments based on the client’s goals and risk tolerance.
- Avoiding Conflicts of Interest: Fiduciaries must avoid conflicts of interest that could interfere with their ability to act impartially on behalf of their clients. They are expected to disclose any potential conflicts and take steps to mitigate them.
- Duty of Loyalty: Fiduciaries must demonstrate loyalty to their clients or beneficiaries, meaning they should not engage in self-dealing or prioritize their own interests over those of the client.