UNDERSTANDING THE FIDUCIARY STANDARD
In financial services, there have traditionally been two types of standards: the suitability standard and the fiduciary standard.
The suitability standard is defined as determining whether an investment product or strategy is “suitable” for the investor based on his or her financial objectives and risk comfort level. This standard is for people who sell financial products, generally brokers and insurance company representatives. These salespeople are contractually obligated to place the interests of their employer ahead of the interests of their clients. Unlike other classic professions, such as law and medicine, anyone can call himself or herself an investment or financial advisor even if they are really a salesperson. The fiduciary standard is a higher level of responsibility for the advisor.
The fiduciary standard goes beyond suitability and requires that any advice on products and strategies be provided in the best interests of the investor. The fiduciary standard of care requires that the advisor take into consideration whether the fees are reasonable, whether there are any conflicts of interest, and whether the investments are adequately diversified.
OUR COMMITMENT TO YOU
As a Registered Investment Advisor, TRG Capital Management has always maintained the higher fiduciary standard and will continue to do so. We are proud to commit to the following five fiduciary principles:
- We will always put your best interests first.
- We will act with prudence; that is, with the skill, care, diligence, and good judgement of a professional.
- We will not mislead you, and we will provide conspicuous, full and fair disclosure of all important facts.
- We will avoid conflicts of interest.
- We will fully disclose and fairly manage, in your favor, any unavoidable conflicts.