For years, consumer groups and rival industry factions have battled — before Congress, the Securities and Exchange Commission and, of course, the press — over whether that “advice” should be required to be in the client’s best interest (the so-called fiduciary standard) or merely “suitable.” Under current rules, advisers can adhere to either one of those ethical standards or both, depending on how clients pay for their services. The SEC has said it wants to hold all advisers to the tougher best-interest standard. Most consumer groups favor such a change, arguing that the looser “suitability” standard encourages advisers to steer clients into costlier products that will earn them fatter commissions. “They call themselves advisers, but they are functionally sales reps,” says Knut Rostad, founder of the Institute for the Fiduciary Standard, an investor-advocacy group.
Did you catch that? The majority of advisors are fighting legislation that would require them to (oh the horror!) provide advice in the client’s best interest! Unbelievable. It’s no wonder the financial services industry is not trusted. Rest assured, Pacifica Wealth adheres to the higher ethical standard and is REQUIRED (of course we’d do it even if it wasn’t required) to always provide advice in the client’s best interest.
About the Independent Financial Advisor
Robert Pagliarini, PhD, CFP® has helped clients across the United States manage, grow, and preserve their wealth for nearly three decades. His goal is to provide comprehensive financial, investment, and tax advice in a way that is honest and ethical. In addition, he is a CFP® Board Ambassador, one of only 50 in the country, and a fiduciary. In his spare time, he writes personal finance books. With decades of experience as a financial advisor, the media often calls on him for his expertise. Contact Robert today to learn more about his financial planning services.
