The Financial Planning Association (FPA) ran a two full page advertisement in The Wall Street Journal on Tuesday (October 12, 2010). It promoted the value of working with a financial planner who is a member of the FPA. One of the reasons cited is that members are required to adhere to a Fiduciary Standard of Care.
The section included several questions and answers. One of the questions addressed the fiduciary issue. It states, “A financial planner who upholds a fiduciary standard of care makes five promises to clients. They are required by law to (1) put your best interests above all, (2) act with due care and utmost good faith, (3) be transparent an disclose all facts, including the cost of services and recommended investment and insurance products, (4) avoid conflicts of interest, and (5) not mislead you.”
Smart consumers only work with financial planners who adhere to this standard. Unfortunately, it is not readily apparent to the consumer who does and who does not. So, I recommend simply asking.
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