Written by
Danny Chen⚠️Not all financial advisors are the same. Some prioritize their commissions over your financial well-being, while others are legally bound to act in your best interest as fiduciary advisors.
A fiduciary financial advisor isn’t just someone who gives advice; they are legally and ethically committed to helping you reach your financial goals with transparency and trust.
During the customer interaction, an advisor with fiduciary duties will
✅Ensure financial advice is appropriate for clients: Consider the client’s situation, future needs, and other background information to provide tailored recommendations.
✅Give a warning notice of incomplete information: Notice the client that the information provided is incomplete or inaccurate. If no further information is given, the advice given will be negatively affected.
✅Prioritize your client’s financial interests: Place your client’s interest ahead of the company and the advisor itself by identifying any potential conflicts of interest. Even if the advice does not directly benefit them financially, they withhold the ethical and legal standards to provide suitable suggestions to customers.
✅Document the advice given to customers: Use plain language to clearly communicate the process, research, considerations, recommendations, and fee structure without hidden rules.
A fiduciary’s ethical responsibility ensures that you stay on the right path toward your financial goals. At Optivide, we support climate stakeholders in solving the climate problem with financial confidence so that they are able to practice climate action in the long term.
