611 Druid Rd E • Suite 105 • Clearwater, FL 33756 • 727.441.9022
Meridian One Building • 4350 West Cypress Street • Suite 225 • Tampa, FL 33607 • 813.405.4846
The ProVise Advisor Team
FIDUCIARY GOES MAINSTREAM – BUT WHAT DOES IT MEAN TO YOU?
Not all financial advisors are held to a fiduciary standard
in dealing with clients. While most clients believe that their
personal advisor acts with the best of intentions, there is
a big difference between best of intention and acting in a
client’s best interest, i.e. acting as a fiduciary. But what
does that mean?
First, there is a Duty of Loyalty which translates into:
a) placing the interest of the client above the interests
of the advisor and company; b) avoiding conflicts of
interest, or fully disclosing conflicts, obtaining the client’s
understanding and consent, and managing the conflict
in favor of the client; and c) acting without regard to the
financial or other interest of the advisor and company, thus
always acting in the client’s best interest.
Next is the Duty of Care. In order to fulfill this duty
a fiduciary must act with the care, skill, prudence, and
diligence that a prudent professional would exercise in
light of the client’s goals, risk tolerance, objectives, and
financial and personal circumstances.
Finally, there is a Duty to Follow Client Instructions
wherein a fiduciary must comply with the terms of the
client engagement and follow all directions of the client
that are reasonable and lawful.
Since ProVise became a SEC Registered Investment
Advisor firm in 1988 each of our clients which currently
total over 1100 with approximately $1.4 billion of assets
under management as of 6/30/19 in over 30 states has been
served at a fiduciary standard of care.
Our Chair and CEO, Ray Ferrara, testified before the
Department of Labor in support of the Department’s
fiduciary proposal for retirement plans. Unfortunately,
About ProVise Management Group, LLC: ProVise is a financial planning and investment management firm registered with the Securities and Exchange
Commission (SEC) and has been in business since 1986. Our 15 professional advisors serve approximately 1100 clients in over 30 states. As of 6/30/19 we
were managing approximately $1.4 billion for our individual, corporate, not-for-profit and 401k retirement plans. Please visit our website at: provise.com.
Investment Advisory Services offered through ProVise Management Group, LLC. The information herein is general and educational in nature and should
not be considered legal or tax advice. Tax laws and regulations are complex and are subject to change.
90 TAMPA BAY MAGAZINE | SEPTEMBER/OCTOBER 2019
much of the broker/dealer and life insurance industry
opposed this rule and it was struck down by the courts.
The SEC has developed another proposal that was recently
passed called Regulation Best Interest which is scheduled
to go into effect on June 30, 2020. Unfortunately, in our
opinion and that of many consumer groups, we believe this is
a lower standard than fiduciary. There are already lawsuits
pending on this matter. Many states are considering their
own fiduciary standards in light of the federal government
not providing the consumer protections that the states feel
is warranted.
Ray also chaired the Commission on Standards on behalf of
the CFP Board of Standards which recommended a fiduciary
standard as described above for CFP® professionals at all
times when providing financial advice which is broadly
defined. This proposal was adopted by CFP Board and
went into effect on October 1, 2019.
Concurrently, the Code of Ethics reads that a CFP®
professional must: 1) Act with honesty, integrity, competence
and diligence; 2) Act in the client’s best interest; 3) Exercise
due care; 4) Avoid or disclose and manage conflicts of
interest; 5) Maintain the confidentiality and protect the
privacy of client information; and 6) Act in a manner that
reflects positively on the financial planning profession and
CFP® certification.
In short, if you have not asked your advisor if they act
as a fiduciary at all times when providing financial advice,
how do you know if they are held to a fiduciary standard
by law or whether they just have the best of intentions.
At ProVise, our 15 advisors can all answer this with an
unequivocal, “Yes”. That is what it means to you.