Becoming a Fiduciary
These are the key considerations for financial professionals when developing and documenting a plan for your practice as you move forward as a fiduciary.
As a fiduciary, financial professionals are legally required to put their clients’ needs before their own and give advice that is solely in the best interests of clients. However, with the appropriate preparation, you will be able to optimize your practice, transition your current business successfully and position yourself for future growth.
Organize Your Practice
This change will have a major impact on the entire financial industry. Preparing early will ensure you and your clients have a smooth transition. Educating your team, defining roles and responsibilities and identifying third-party partners is a good way to start.
Formalize Your Process
Clear communication and documentation of each step of your relationship and investment process is even more important when acting as a fiduciary.
Resources to use:
Build and analyze your clients’ American Funds portfolios using our suite of portfolio construction tools, such as Custom Planner and Portfolio Analyzer®.
Run hypotheticals to test portfolios and investment scenarios and generate illustrations that you can share with clients to support your recommendations.
Work With Clients
Having conversations with your clients and prospects will be critical to determine the account type that is in their best interests and to construct comprehensive investment plans aligned with their specific goals. It also will provide you with the information you need to add scale to your practice so you can focus more time on clients and growing your business.