What Is a Fiduciary?
A fiduciary is a financial advisor who is legally required to put your interests first. Whitwell & Co. is a fee-only, SEC-registered investment adviser (RIA). We are legally bound to act in your best interest at all times and are paid only by clients, never by commissions or product companies. Any material conflicts are disclosed directly to clients and in our Form ADV Part 2A.
What Does Fiduciary Mean?
The word "fiduciary" comes from the Latin fiducia, meaning trust. In financial services, a fiduciary is an advisor who is held to the highest legal standard of care. This means they must act solely in the client's best interest, not their own, and must disclose any potential conflicts of interest.
Not all financial advisors are fiduciaries. Many operate under a lower "suitability" standard, which only requires that recommendations be suitable for a client -- not necessarily the best option available. The difference can have a meaningful impact on the advice you receive and the fees you pay over a lifetime.
Fiduciary vs Non-Fiduciary Advisors
Understanding the difference between fiduciary and non-fiduciary advisors is critical when choosing who manages your wealth.
| Fiduciary Advisor | Non-Fiduciary Advisor | |
|---|---|---|
| Legal Standard | Must act in client's best interest | Suitability standard |
| Fee Structure | Client-paid only | Commissions from products |
| Conflicts of Interest | Must disclose and avoid | May have undisclosed conflicts |
Is Your Advisor a Fiduciary?
If you are unsure whether your current advisor is a fiduciary, ask them directly: "Are you legally required to act in my best interest at all times?" A true fiduciary will answer yes without hesitation. You can also check the SEC's Investment Adviser Public Disclosure database to verify registration.
At Whitwell & Co., we are proud to operate as a fee-only, SEC-registered investment advisory firm. Every member of our team is held to the fiduciary standard, and we welcome the scrutiny that comes with it.
Work with a fiduciary who puts your interests first.
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