I have never been to Africa but it is a trip definitely on our “bucket list.” Lindy (my wife) and I would love to participate in some sort of mission trip to Africa and also time the trip to witness the great migration. If any of you have seen Planet Earth, you know what I am talking about. The great migration happens every year where millions of animals move across the continent of Africa. It is supposed to be majestic to see that many animals moving in unison.
In an almost similar fashion, there is a great migration happening in the wealth management industry. Many financial advisors are leaving large brokerage firms (and banks) and moving towards independence. Hundreds and hundreds of the top wealth management teams have moved toward an independent model (i.e. become an independent Registered Investment Advisory (RIA) firm).
The primary reason for this trend is the departing advisor’s desire to do what is best for their clients and follow a fiduciary standard for advisory accounts. As more advisors realize the importance of independent advice, we think this trend will continue to accelerate.
What is a fiduciary?
This is a legal phrase that is used often and not always in the correct way. A fiduciary is by definition an advocate for his/her clients and acts in the best interest of his/her clients at all times. In 2018, Matt and I left a brokerage firm with the desire to relocate to fiduciary centric firm that was willing (and able) to always place the client’s interest first. Since joining our current firm, our clients have benefited from this fiduciary centric advice. We feel very fortunate and thankful to be able to serve our clients through our private, independent, employee-owned firm dedicated to our personal values including faith-based stewardship and excellence.
What does it mean to serve as a fiduciary and act in the best interest of the client?
1. Place the Client First | Place the interests of the client above our own interests and have a reasonable, independent basis for investment advice and financial planning advice.
2. Cookie Cutter vs. Custom | Only provide investment advice and financial planning advice that is suitable to each individual client as it pertains to their specific goals and objectives.
3. Unbiased Advice | Act with care, skill, prudence and diligence to avoid misleading clients.
4. Reliability Matters | Be loyal to clients and act in good faith at all times.
5. Fair Execution | Obtain best execution when implementing trades for clients.
6. Transparency, Transparency, Transparency | Make full and fair disclosure to the client of all material facts when a conflict of interest (or potential conflict of interest) exists
The grass is not always greener on the other side… but in our case, it has been.
About The Author
Randy Price serves as a Partner and an Executive Managing Director for The Price Group of Steward Partners. He resides in Houston with his wife, Lindy, and the family golden retriever. Lindy and Randy are recent empty nesters as their five children have all moved out of the house. Over the past 30+ years, Randy has helped families find comfort, confidence, and clarity regarding their wealth and their legacy. Randy firmly believes that everyone needs a wealth coach!
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