Upholding the Fiduciary Standard
Federal law requires that Registered Investment Advisers (RIA) be held to a Fiduciary Standard. This means an advisor must act solely in the best interest of the client; even if that interest is in conflict with the adviser's own financial interest. Investment Advisers must disclose any conflict to the client prior to and throughout a business engagement. In addition, Investment Advisers must adopt a Code of Ethics and fully disclose how they are compensated.
Unfortunately, only a small proportion of "financial advisers" are federally or state-registered Investment Advisers (RIA). Most financial advisers are considered "Broker-Dealers" by the SEC. They are held to a lower standard of diligence on behalf of their clients. In fact, they must be "fair and suitable" in their recommendations, but they have no legal obligation to put your interest ahead of their personal interest.
Cambridge Capital Management, LLC, has always upheld the Fiduciary Standard. Putting our clients' best interest first is neither a financial nor legal burden on us; it is a logical extension of the relationship we build with each client.
For additional information on the importance of the fiduciary standard, please visit the following links: