Fiduciary Duty vs Suitability Standards

If you're an investors looking for financial advice who does not know the difference between fiduciary duty and suitability, you're not alone. In fact, some whose minds take a more cynical view of the financial industry might say that that is exactly how the industry wants it. Confusion or ignorance over the professional standard of the care in the industry unfortunately leads to many investors losing many millions of dollars every year to financial advisors who are upholding one standard while investors think they are upholding another. Let us explain.Fiduciary Duty Is the Highest Standard of CareIn the financial industry, fiduciary duty or obligation or responsibility requires that the professional managing your money always act in the best interest of his or her client, and provide them with the highest standards of care and diligence. The suitability standard, on the other hand, only requires that a financial professional faithfully match an investor's…

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