Last May my colleague Marisa Bradbury wrote a great piece titled, “Putting Investors First,” in which she articulated the title as the principle of the fiduciary standard. Please read it if you have not had a chance and you are interested in this hot topic, https://sigmainvestments.com/wp-content/uploads/2015/05/May-SigSumm-2015.pdf.
In the investment advisory business, there are two standards at play: fiduciary and suitability. The U.S. Department of Justice will be making a ruling on the fiduciary standard within the next few weeks. The implications can have a major impact on the industry, but most importantly on the client.
Sigma Investment Counselors is and has been a fiduciary for our clients since our founding. Whether you fully understand the difference between investment advisory firms acting in a fiduciary capacity or not, it is good to know that we are attempting to raise the standard in an industry as vital to the future as capital investment.
Every profession or particular trade has their own specialized vocabulary. We know it well in the investment industry and many ask us to explain it to them. I know that words matter and oftentimes find it very difficult to articulate the legal vernacular. So, I asked a well respected lawyer nearby to simplify the fiduciary standard for me.
In his own words, “As a fiduciary, we do for our clients as we would do for our self. That’s a good way to put it.” That means trust to me.
Investment will remain paramount in a capitalistic society; and enhancing trust will strengthen relationships, investments, and society.
All comments and suggestions are welcome.
Tony Basalla