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Working With a Fiduciary

Eric Cumley, CFP® serves in the role of a fiduciary. A fiduciary is responsible for looking after the assets of another person on that person’s behalf. This means Eric’s primary legal duty is to place the interests of Olympic’s clients above his own at all times.

This solemn duty also requires full, voluntary disclosure of all facts considered vital to a client’s investment decisions, especially with regard to fees. For example, if two investment products offer a similar risk and return profile—but one costs less than the other—the fiduciary advisor is legally obligated to recommend the lower cost option. By contrast, there is no legal requirement for non-fiduciary advisors to do this.

In fact, many people working for banks and brokerage firms are actually known as registered representatives. Unlike a fiduciary, registered reps operate according to what is known as the suitability standard. Under suitability rules, the primary duty of a registered rep is generally to their employer and the company’s revenue goals, not necessarily to the client. This is a less stringent standard than the one imposed on a fiduciary, and can result in conflicts of interest or hidden agendas which taint the advice equation.

Learn more about working with an independent Registered Investment Advisor firm like Olympic (and a fiduciary like Eric) by visiting Independent Advisor Learning Center | Find Your Advisor

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