Legend Financial Advisors, Inc.® (Legend) is a fee-only, fiduciary advisory firm:

In 1994, Legend became a fiduciary advisory firm and therefore governed by the Fiduciary standard of law.  As such, Legend and its advisors work in their clients’ best interests at all times.

As a Fiduciary, Legend attempts to avoid conflicts of interests, where possible.  This includes not receiving commissions of any sort.

What is a fiduciary?

The financial planning association defines the term Fiduciary as: someone who “acts in utmost good faith,” in a manner he or she believes to be in the “best interests” of the client.

When applied to financial advisors, a Fiduciary is an advisor who has a legal responsibility for managing investment decisions and making all decisions in the “best interests” of the client.  A Fiduciary duty is the “highest standard of care”.

Who is not a fiduciary or does not act as a fiduciary would?

Examples of advisors who are non-fiduciaries include:

  1. Anyone who is not a registered investment advisor themselves or is not affiliated with a registered investment advisor.
  2. Individual salespeople who are employed by brokerage firms and/or broker/dealers (these firms are not fiduciaries either) and are often called stockbrokers, registered representatives, account executives or other similar position names whose advice is influenced by the compensation that they receive from their recommended transactions.
  3. Insurance companies or their salespeople who recommend high commission products such as annuities and life insurance.
  4. Financial product companies or their salespeople that recommend their own proprietary products.
  5. Individuals or companies that do not put client’s “best interests” first.
  6. Individuals or companies that do not act with prudence; that is, with the skill, care, diligence, good judgment and utmost good faith.
  7. Individuals or companies that mislead clients and do not provide truthful, transparent, full and fair disclosure of all important and material facts.
  8. Individuals or companies that do not avoid conflicts of interest.
  9. Individuals or companies that do not disclose and fairly manage, in a client’s favor, any unavoidable conflicts.
  10. Individuals or companies that will not attempt to minimize investment expenses where possible.

Are fee-based advisors fee-only advisors?:

Many individuals and firms who charge fees and receive commissions call themselves Fee-Based advisors instead of fee and commission advisors.  In short, they are attempting to mislead the public that they are Fee-Only advisors.

Legend will commit in writing that all decisions will be made in the client’s best interest.

Legend Financial Advisors, Inc.® will sign a document that Legend entitled “putting client interests first” for any prospective client.  In this Fiduciary oath document Legend commits to the seven Fiduciary principles.

  1. To obtain a pdf copy of a the Fiduciary oath form signed by Legend, please click here.
  2. To obtain a pdf copy of an unsigned Fiduciary oath form, please click here.

Have a current advisor or broker?

Ask that advisor or broker or other salesperson to read and sign the document entitled “Fiduciary oath: putting client interests first”.  If they won’t or are not allowed by their firm, to sign the form, consider searching for a Fee-Only, Fiduciary advisor and/or a Fee-Only, Fiduciary advisory firm.