Fiduciary
What is a fiduciary?
A fiduciary is a professional who is legally and ethically bound to act in the best interests
of their clients. Unlike other financial advisors who may be influenced by commissions
or other incentives, a fiduciary is required to prioritize the needs and goals of their
clients above all else. This duty of loyalty and care ensures that the advice and
decisions made by a fiduciary are aligned with what is best for the client, providing an
added layer of trust and security in financial planning and investment management.
How does a fiduciary differ from a broker-dealer/insurance agent?
The primary difference between a fiduciary and a broker-dealer or insurance agent lies
in the level of responsibility and obligation to the client. A fiduciary is legally required to
act in the best interests of their clients, making decisions and providing advice that
solely benefits the client, without any conflict of interest. This means a fiduciary must
prioritize the client’s goals and needs above their own financial gain.
On the other hand, a broker-dealer or insurance agent operates under a suitability
standard, which requires them to recommend products that are “suitable” for the client
but not necessarily in the client's best interest. These professionals may receive
commissions or incentives for selling certain financial products, which can create
potential conflicts of interest. While they must consider the client's needs, their
recommendations might be influenced by the compensation they receive, rather than
being purely focused on the client’s best outcomes.
At Shintani Wealth Management Services, we embrace our role as your fiduciary advisor. We are deeply committed to ensuring that every decision we make and every action we take is firmly rooted in your best interests.