Keep Reminding Clients About the Importance of Being a Fiduciary
An advisor's job of educating clients about the benefits of working with a fiduciary is never done.
I write a lot about the importance of a fiduciary relationship between financial advisors and their clients. I can even sound preachy at times. But there is a clear and striking difference between a fiduciary and nonfiduciary: The former is legally required to put the interests of clients first; the latter is not.
Advisors who are fiduciaries may make this a core part of their sales pitch to a new client. But we shouldn't assume that just because a client has signed on with us, that he or she really understands why it matters. The education work doesn't end there. And if your clients don't truly understand the difference between a fiduciary and nonfiduciary, all your good intentions could turn out to be worthless.