Fiduciary Standard


Value Investment Professionals provides fee-only asset management services with a fiduciary standard of care.

What is the “fiduciary standard” of care?

  • Putting the client’s best interest first.
  • Acting with prudence – the skill, diligence, and good judgment of a professional.
  • Providing full and fair disclosure of all important facts.
  • Avoiding conflicts of interest and fully disclosing situations where conflicts exist.

An advisor with a “fiduciary standard” must place clients into prudent investments.

They cannot lawfully lead clients into high-cost investments without justification – particularly when known lower cost alternatives exist.
A fiduciary standard is more stringent when compared to brokers’ suitability standard – the standard accepted by broker-dealers.

A fiduciary standard is superior to brokers’ lower suitability standard – the standard accepted by many major banks.

What is a “suitability standard”?

  • Knowing the client and their financial situation.
  • Recommending products that are suitable to their situation.

Brokers with a “suitability standard” may intentionally or unknowingly place clients into higher cost investments that may enrich the broker at the expense of the client’s return. This is lawful under the suitability standard.