VERDENCE/PRO FIDUCIARY
vs.
OTHERS’ SUITABILITY STANDARD
Verdence/PRO is held to a fiduciary standard, which means we are legally obligated to act in our client’s best interest. By comparison, stockbrokers are typically held to the suitability standard.1 Being a “suitable” advisor or broker means being required to sell investments based on reasonable diligence for a client, not necessarily what’s in his or her best interests. Stockbrokers’ responsibility is to their firm, not always to their clients.
This difference between fiduciary and suitability standards can amount to a significant swing in a client’s retirement dollars.
1. FINRA Rule 2111(a) Suitability Notice
“We view Verdence/PRO clients as business owners and entrepreneurs. They are owners of their own brand. They share many of the complex issues Verdence Capital Advisors’ ultra-high-net-worth business owner and entrepreneur clients face. The biggest difference? Overall advocacy for professional athletes’ and entertainers’ financial well-being is inadequate. We have found all too often that unscrupulous advisory firms will hide fees and compensation as a method to control or confuse their clients. Why is that?? Why do they have to hide the ball??
We insist on complete transparency, which keeps empowerment where it belongs: with our clients.” —Noel LaMontagne, Verdence/PRO
QUESTIONS
to consider when choosing an advisor:
- Are you a registered fiduciary?
- How are you paid?
- Are you paid commissions to recommend investments to me?
- Do you have sales quotas?
- Will a financial plan be custom created for me?
- Have you worked with high-net-worth individuals and families?
- Do you have unique insight into my profession/career?
- Describe your company’s culture.
- Who will be working directly with me?
- How will you communicate with me?
