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.
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.
Clear communication and documentation of each step of your relationship and investment process is even more important when acting as a fiduciary.
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.
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.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
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.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.