Submitted By adapat144
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CHAPTER 2: Fiduciary and Professional Standards This chapter covers in detail the duties of a Wealth Manager and what their fiduciary duties are. A fiduciary is a person who holds a legal or ethical relationship of trust between himself and herself and one or more other parties which would be their clients. Typically, a fiduciary is entrusted the funds of their client for safekeeping or investment. Likewise, asset managers—including managers of pension plans, endowments and other tax-exempt assets—are considered fiduciaries under applicable statutes and laws. When you are in a fiduciary relationship, one person, in a position of vulnerability, justifiably vests confidence, good faith, reliance, and trust in another whose aid, advice or protection is trusted as knowledgeable in some manner. In such a relationship the client is expecting the fiduciary to act on his behalf at all times for the sole benefit and interest of protecting them and their money. A fiduciary has the duty of having the highest standard of care. When a client hires a fiduciary they are expecting the fiduciary to be extremely loyal to them in such a way that there must be no conflict of duty between the fiduciary and the client, and the fiduciary must not profit from his position as a fiduciary. A client is entrusting his fiduciary to follow a proper portfolio management process and consider the uniqueness of their individual situation and make decisions that are solely for the growth of their investments. The client is expecting a diversified portfolio with the risk factors taken into consideration. Once a relationship is established the client expects that fiduciary to follow the standards of professional ethics which includes and is not limited to the fiduciary placing the integrity of the profession and the interests of their clients above their own interests, acting with integrity, competence, and respect, and maintaining and developing their professional competence.
Standards which includes exhibiting professionalism and integrity of the markets, knowing how to do diligent investment analysis and recommendations, and not have any form of conflicts of interest in your portfolio decision making.

As a trusted fiduciary you are expected to: 1) Act with integrity, competence, diligence, respect and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and any other participants in the global markets, 2) Place the integrity of the investment profession and the interests of clients above their own personal interests, 3) Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities, 4) Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession, 5) Promote the integrity and viability of the global capital markets for the ultimate benefit of society, and 6) Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.


Financial advisors spend a lot of time giving their clients advice on how to invest their money. Each individual client has different needs and concerns that need to be addressed. It is important to be a good listener to the clients various concerns, by doing this as an advisors you will not miss important information that may help to best serve your clients and protect the clients’ financial futures. It’s important for financial advisors to learn how to listen more to their clients and to ask more questions before they start to offer up advice. They need to focus on responding to their clients’ personal needs, rather than just focusing energy on selling their clients on products or investment strategies, even if they