What is a Fiduciary?
“a person holding the character of a trustee, or a character analogous to that of a trustee, in respect to the trust and confidence involved in it and the scrupulous good faith and candor which it requires. Thus, a person is a fiduciary who is invested with rights and powers to be exercised for the benefit of another person.” ~Black’s Law Dictionary
In essence the fiduciary standard requires that a fiduciary Financial Advisor act in the interest of their clients before considering their own financial self-interest.
We Are Proud Fiduciaries
Lawrence Wealth Management (LWM) was established in 2008 with the mission of providing unbiased, conflict-free financial planning and investment management advice. We registered as an Investment Advisory firm, and are supervised by the Securities and Exchange Commission (SEC) under the Investment Advisory Act of 1940 which requires all registrants to be fiduciaries. Our mission is reinforced by all our policies including being a “fee-only” firm, which means we never receive any financial compensation or commissions, other than an advisory fee for a percent of assets under management, when our clients purchase or sell any investment.
Our Client’s Interests Come First
It is not legally required that all investment advice meet the the fiduciary standard. Some securities brokerage firms are instead held to the “Suitability” standard, a stark difference than the “Fiduciary” standard. The suitability standard gives security brokerage firms legal cover as long as they sell products that are “generally suitable”, but may not be the best or in the best interest of their clients. The suitability standard allows firms, held to this lower standard, to act in their own self-interest ahead of their client’s interests. Lawrence Wealth Management operates under the more stringent fiduciary standard, not the suitability standard.
New Rules for Brokerage Firms
The U.S. DOL has written extensively on a new set of rules concerning brokerage firms, and the purpose of the new rules. These documents explain the issues addressed, specifically as they apply to conflicts of interest and retirement advice. The rule is slated to be phased in beginning in April 2017, however, the pending change to the presidential administration has generated some question about the rule’s implementation.
Regardless of what happens with Federal Law or DOL regulations, Lawrence Wealth Management will remain a Fiduciary, a status we proudly embraced at our founding.