Unveiling the Truth Behind 'Fiduciary': A Clarion Call for Genuine Advocacy in Finance

In the vast world of finance, the term 'fiduciary' has been stretched, twisted, and overused to the brink of losing its essence. It's become a badge worn with pride by many—ranging from annuity salespeople to mortgage brokers, and even those nestled within the sprawling structures of publicly traded broker-dealers.  This now overused marketing term has turned the vow of a true fiduciary duty—to unconditionally place the client's interests above all—to be drowned out.

Imagine fiduciary duty as the North Star in the financial universe: a steadfast guide ensuring that a client's welfare is paramount. This isn't merely about ethical high ground; it's a solemn, legal commitment to act with unwavering loyalty and integrity. It’s about making decisions with a purity of purpose that transcends personal gain or corporate profit.

Yet, as we navigate through the financial landscape, shadows of conflict loom large. Consider the advisor under a corporate giant's wing, whose genuine intentions for client welfare are clouded by the overarching priority of shareholder returns. Or delve into the world of RIA firms, where private equity's influence introduces a complex ballet of balancing client interests with investor expectations.

The liberal sprinkling of the 'fiduciary' label by those not truly bound by its obligations muddies the waters, leaving clients and diligent professionals lost in the confusion. This dilution not only undermines the term’s value but also clouds the transparency crucial for trust.

This is goal - authenticity and integrity in the financial services industry. It's time to peel away the layers of misuse and reclaim the term 'fiduciary' for those who live by its true meaning. Let's not hide behind the facade of fiduciary duty without the full commitment it demands. It's about more than just avoiding the scrutiny of a discerning analyst or a savvy client—it's about honoring the very core of our professional ethos.

Before you brandish the title of fiduciary, let's ensure our actions resonate with its profound implications. Our collective commitment to this principle can transform the industry, fostering a culture where trust is the cornerstone and clients' needs are the true north.

Let's not only claim to act in our clients' best interests but also navigate the intricate dance of conflicts with grace and integrity.  For clients, let's give you some easy questions to ask next time this term comes up:

• Who owns the client relationship?

• What is the financial incentive for you to stay or leave the current structure of your business?

• Where can I see who else is benefiting from the nature of our business relationship?

• When is the last time you revisited your custody and clearing providers?

• Why have you chosen this structure and how does it benefit me (the client)?  How does it benefit you (the advisor)?  Who else is benefiting?

It's easy to point fingers at the sales/rewards trip that people are going on for selling proprietary products but let's make sure the house is not made of glass before you start throwing stones.

Securities and Investment Advisory Services offered through Fortress Private Ledger, LLC.  Member FINRA/SIPC