What Is The Difference Between Suitability vs. Fiduciary Standards?

Hi everyone. My name is Tan and I am an independent CERTIFIED FINANCIAL PLANNER™ practitioner.

What is the difference between a suitability vs. fiduciary standards?

A Fiduciary Standard required Investment Adviser Representatives to have a legal obligation to act in the clients’ best interest, require total trust, good faith, and honesty.

A Suitability Standard allows Financial Advisors, Financial Professionals, Wealth Advisors, Brokers, and Insurance Agents to sell investments and insurance products they believe are suitable for their clients and not necessarily what is best for the client.

As a Registered Investment Advisor, TAN Wealth Management is governed by the Fiduciary Standard at all times. Although we sell investments and insurance products to our clients, we always put our clients best interest ahead of ours. Clients can also purchase products from any providers they like.

You can ask your financial professional if they are regulated under the Fiduciary or Suitability Standard at all times?

Thank you for watching. This is Tan, you trusted advisor.

References:
https://www.sec.gov/news/speech/speech-peirce-072418
https://www.cfp.net/public-policy/public-policy-issues/fiduciary-standard

This material is for educational use only and does not constitute tax, legal, or investment advice. Information may be changed or updated without notice. Consult with a licensed professional regarding your personal circumstances.

Please do not excerpt or copy this information without prior consent from TAN Wealth Management.