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To achieve their financial goals, clients must be able to trust their financial advisors. Unfortunately, the financial advice industry is rife with conflicting interests, misguided incentives, and confusing
terminology. Financial advisors who are not held to a “fiduciary standard” may not act with their clients’ best interests in mind; indeed it is our view that advisors not held to a fiduciary standard may
act in ways that harm the financial health of their clients. To the detriment of diligent investors who are trying hard to save and invest for retirement, many financial advisors in the United States are not held to a fiduciary standard in many of their dealings with clients. In this Navigator, we take a close look at the meaning of fiduciary duty, provide guidance for understanding who is and is not a fiduciary, and discuss current regulatory efforts to extend the fiduciary standard across the financial industry. We also describe Pekin Hardy Strauss’s responsibilities in our role as fiduciaries for our clients.
