Hello,
Below is information we gave out to the participants at the last financial workshop. The first is a list of compiled comments I have heard over the years from financial sales pitches versus objective information from a fiduciary. If you have additional comments you heard from financial sale force, please post what you heard for all of us to learn.
The next section is a fiduciary oath and a code of ethics that financial advisers will sign if they are members of the National Association of Personal Financial Advisers. Hope this information is helpful and a starting point for locating an adviser that looks after your best interests.
Fiduciary Oath and Code of Ethics
National Association of Personal Financial Advisors: http://www.napfa.org/
The advisor shall exercise his/her best efforts to act in good faith and in the best interests of the client.
The advisor shall provide written disclosure to the client prior to the engagement of the advisor, and thereafter throughout the term of the engagement, of any conflicts of interest, which will or reasonably may compromise the impartiality or independence of the advisor.
The advisor, or any party in which the advisor has a financial interest, does not receive any compensation or other remuneration that is contingent on any client’s purchase or sale of a financial product.
The advisor does not receive a fee or other compensation from another party based on the referral of a client or the client’s business.
Following the NAPFA Fiduciary Oath means I shall:
* Always act in good faith and with candor.
* Be proactive in disclosing any conflicts of interest that may impact a client.
* Not accept any referral fees or compensation contingent upon the purchase or sale of a financial product.
Signed this _____ of ________________
________________________________
NAPFA-Registered Financial Advisor
CODE OF ETHICS
Objectivity: NAPFA members strive to be as unbiased as possible in providing advice to clients, and NAPFA members practice on a Fee-Only basis.
Confidentiality: NAPFA members shall keep all client data private, unless authorization is received from the client to share it. NAPFA members shall treat all documents with care and take care when disposing of them. Relations with clients shall be kept private.
Competence: NAPFA members shall strive to maintain a high level of knowledge and ability. Members shall attain continuing education at least at the minimum level required by NAPFA. Members shall not provide advice in areas where they are not capable.
Fairness & Suitability: Dealings and recommendation with clients will always be in the client’s best interests. NAPFA members put their clients first.
Integrity & Honesty: NAPFA members will endeavor to always take the high road and to be ever mindful of the potential for misunderstanding that can accrue in normal human interactions. NAPFA members will be diligent to keep actions and reactions so far above board that a thinking client or other professional would not doubt intentions. In all actions, NAPFA members should be mindful that in addition to serving our clients, we are about the business of building a profession, and our actions should reflect this.
Regulatory Compliance: NAPFA members will strive to maintain conformity with legal regulations.
Full Disclosure: NAPFA members shall fully describe method of compensation and potential conflicts of interest to clients and also specify the total cost of investments.
Professionalism: NAPFA members shall conduct themselves in a way that would be a credit to NAPFA at all times. NAPFA membership involves integrity, honest treatment of clients, and treating people with respect.
MISSION
To promote the public interest by advancing the financial planning profession and supporting our members consistent with our core values.
One additional Professional Organization that has fee-only advisers: http://garrettplanningnetwork.com/
Disclaimer: We claim no guarantees about the ultimate cost or advice given of any adviser found by readers. We offer this information as a starting point. The responsibility for finding a fee-only fiduciary who looks for your best interest is best assured only by your preparation, due diligence and is your sole responsibility.