Hi. I’m Blaine Aikin, CEO of Fiduciary360, an organization focused on promoting a culture of fiduciary responsibility and improving the decision-making processes of investment fiduciaries.
The #1 thing advisors should have on their mind is that soon, every advisory relationship will need to be treated as a fiduciary relationship. This change is happening, and soon will be made necessary either through new legislation and regulation or because the market will demand it. Either way, advisors need to be prepared for it.
The debate on financial regulatory reform has moved beyond whether or not a fiduciary standard will apply for advisory relationships, and on to how it will be applied and who will be charged with oversight. Once the details are decided comes the task of compliance. But advisors who are already following processes to the highest standard possible won’t have to worry about playing catch up.
Meanwhile, the financial crisis has caused investors to become more distrustful, while also becoming more informed than ever. Those advisors who are fiduciaries are reaping the benefits as more new clients want the assurance that a fiduciary standard of care provides.
Implementing fiduciary processes now puts advisors both ahead of the compliance curve for when a fiduciary standard is implemented and gives them a competitive advantage for new clients.
If you’d like to learn more about this important issue further, I invite you to visit
www.fi360.com
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