Broker Check

Fiduciary

WHAT IS A FIDUCIARY?

Today we keep hearing about only doing business with an advisor who is a fiduciary!


The first and most common type of fiduciary is that of a Registered Investment Advisory under Section 206 of the Investment Adviser’s Act of 1940.  The Retirement Planners, USA, LLC is a fiduciary under this law.

The second type of fiduciary is a Department of Labor regulation that applies to anyone who gives advice on any tax qualified retirement account.   The Retirement Planners, USA, LLC also qualifies as a fiduciary under the Department of Labor fiduciary rules as we extensively give advice of tax qualified retirement accounts.

The third type of fiduciary is a Certified Financial Planner who actually does financial planning and delivers to their clients a written financial plan.   John Steele is a Certified Financial Planner who does financial planning and delivers written financial plans.  So, we qualify as a fiduciary under this rule.

Now the fourth type of fiduciary has now rendered the term fiduciary worthless.  This fourth type of fiduciary includes anyone who says they are a fiduciary and has taken some kind of oath at organizations such as NAPFA, CEFEX and The Registry of the Institute for the Fiduciary Standard.  This fourth type of fiduciary has rendered the term fiduciary as meaningless to the general public and the industry as a whole.  Everyone is now a fiduciary who says they are and promises to act like one.   So, this watering down of the term fiduciary has made this title virtually meaningless.

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