Imagine this scenario: you’re feeling ill and you visit the doctor. Everything seems to be looking up when the doctor prescribes you some medicine that will make you feel better. All seems well, until find out the doctor actually is a part owner of that very same drug company.
While that sounds ridiculous and unbelievable (not to mention incredibly illegal), similar situations frequently happen in the world of finance. It comes as a surprise to many that on Wall Street most of the advisors are legally brokers, who are only held to the lower suitability standard. This suitability standard that most of Wall Street holds legally allows things like hidden fees, selling self-branded products, and making commission-based decisions. It would be like allowing a doctor to sell his or her own medicine, or recommend treatments based on a commission they get.
That’s where the fiduciary advantage comes into play. A fiduciary advisor is legally required to act in your best interests, and will be on your side of the table at all times. The fiduciary standard is the highest possible legal standard for financial advisors, and ensures your advisor is sitting on the same side of the table as you.
Want to learn more about the fiduciary advantage?
If you’re interested in learning more about the fiduciary standard and its advantages, don’t hesitate to contact us and find out why LexION Capital can provide honest and transparent investment solutions that are the right fit for you.