Advisory relationships differ from client to client. There is no one-size-fits-all approach that can be taken as a fiduciary. Determining the relationship that is in the best interest of your clients requires having a strong understanding of their needs and goals, and clearly defining the services they want you to provide as their financial professional.
A number of factors play a role in determining what type of account is best for clients, including the investable assets they have under management, their planning needs and the active management needed for their investments. The main difference in account relationship types is the manner in which the financial professional will be compensated.
Explain what a fiduciary standard is and what it means for the relationship
Discuss how you were compensated before, and what may change
Explain the difference between an advisory account and a transaction-based account
Questions to ask your client to determine the appropriate account type
Here are some questions you can ask your clients to help determine which account will be the best fit for them:
Reaffirm your commitment to each client
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.