Why Having a Fiduciary Advisor Matters
We are proud to adhere to fiduciary standards in our work. Blue Trust fiduciary advisors put our clients’ best interests first and are guided by our core values of excellence and integrity while being bound to the highest fiduciary standards. In addition, our financial advisors provide fee-only services, which means they do not receive commissions on any products they recommend to clients. This compensation model allows them to provide objective advice on what they believe is truly best for the client.
The word ‘fiduciary’ is often used in the context of financial duty. While the term may sound intimidating to some, it’s actually a word that should provide comfort and reassurance. When people assume the role of fiduciary, they are legally bound to represent the best interests of the person for whom they’re assuming responsibility. A fiduciary is expected to behave in a trustworthy manner that follows the core duties of care, loyalty, good faith, confidentiality, prudence, and disclosure.1
What is a fiduciary advisor?
Every financial advisor has an obligation to make financial and investment recommendations that are suitable for investors. A fiduciary advisor is held to an even higher standard: they must place the client’s best interests ahead of their own and even ahead of their employer’s interests.
Fiduciary advisors are also required to provide clients with transparency. Clients are given a clear understanding of the services provided, compensation received, and the general business practices of the company or advisor. In many cases, fiduciary advisors play an essential role with families who are transferring wealth from one generation to the next or who rely on professionals to make important financial decisions on their behalf.
What does fee-only mean?
Fee-only advisors “are compensated directly by their clients for advice, plan implementation and for the ongoing management of assets.”2 They do not receive commissions on products they recommend, which helps them to remain objective and avoid conflicts of interest. Conflicts of interest in the financial services industry can come in a variety of shapes and sizes, but compensation often comes to the forefront.
Blue Trust advisors are fee-only and don’t earn commissions for recommending services or buying or selling securities on behalf of our clients. Our comprehensive approach to wealth management allows us to provide objective advice on an ongoing basis, while our compensation is received in the form of a single all-inclusive fee (such as a flat fee, percentage of assets under management, etc.).
How do I know that my fiduciary advisor has my best interests in mind?
Fiduciaries are required to take available material information into consideration before making decisions for their clients. At Blue Trust, that means we employ an extra level of due diligence—for decisions both big and small—and carefully weigh the pros and cons of all options.
This level of due diligence requires a significant investment of time and resources. Blue Trust has a team of highly trained investment professionals who analyze every security for the client portfolios we manage and when new clients join us, their assets and financial goals and objectives are thoroughly reviewed to determine which investments will meet their needs.
Is Blue Trust subject to government regulations?
Yes, our trust company is highly regulated by the Tennessee Department of Financial Institutions (TDFI). The TDFI’s mission is to ensure that the state-chartered banking system runs on a safe and sound basis and to periodically examine the financial soundness of the institutions they regulate.
Blue Trust is subject to this high level of regulatory scrutiny and conducts annual reviews of each client’s accounts to ensure that the portfolio is managed in accordance with the client’s objectives and goals because our goal is to do our work for you with integrity.
At Blue Trust, we are proud that our advisors adhere to the highest fiduciary standards. Our clients can have confidence that we desire to see them reach their goals and make wise financial decisions. One of our core guiding principles is that we view all money as God’s money, and ourselves as good stewards of those resources. As a client, we’re glad that you’ve joined our mission to use technical expertise and biblical principles to help steward what God has blessed you with. If you’re not a client and wish to learn more, please contact a Blue Trust advisor near you.
1www.law.cornell.edu/wex/fiduciary_duty
2www.napfa.org/financial-planning/what-is-fee-only-advising
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