FIDUCIARY RESPONSIBILITY
All of the financial professionals at Commons Capital Advisors accept fiduciary responsibility and therefore have a legal responsibility to put your needs ahead of their own. There are a number of important differences that separate advisors who have fiduciary responsibilities from those who do not.Industry estimates show that approximately 85% of financial advisors do not have fiduciary responsibility. This includes stockbrokers, insurance agents or simple sales representatives. They may hold various licenses, but since they are not fiduciaries, they are often more interested in selling investment products than managing your portfolio.
Non-fiduciary advisors are compensated through commissions, which are often equivalent to management fees over several years. In the end, stepping away from one of these products usually involves a hefty surrender fee - no matter how bad the service or the results. Titles for non-fiduciary advisors are unregulated, which means they can adopt any title they like: financial advisor, vice president, financial consultant and financial planner. It doesn't change the fact that they typically do not have a fiduciary responsibility to put an investor’s interests ahead of their own. These sales reps have limited disclosure requirements and are not allowed to have account discretion. Most of them receive a large commission up front on the initial sale, which means they have very little incentive to continue tracking the investment and assisting the client.NON-FIDUCIARY ADVISORS
Fiduciary advisors are usually Registered Investment Advisors (RIA's) or Investment Advisor Representatives (IAR’s), like all advisors at CCA. These advisors are registered with the SEC or the state security division, and they are acknowledged fiduciaries that provide ongoing financial advice and services. Fiduciary advisors receive compensation on a quarter-by-quarter or month-by-month basis for continued services, and that compensation ends if the investor is dissatisfied and chooses to leave the firm. An advisor with fiduciary responsibilities is held to a higher ethical standard and have the knowledge to provide sophisticated wealth management services and advice. IAR’s are licensed to provide ongoing financial advice, and fiduciary advisors are required to provide disclosure in their ADV’s. Download our Form ADV under the Asset Management section.FIDUCIARY ADVISORS