Fiduciary Relationship

Step 5: Fiduciary Relationship

The final step in the 5-Step Process gives you access to a Fiduciary Registered Investment Advisor (RIA). This type of financial advisor is one who must always act in your best interest, and they never sell you products or receive commission from outside dealers.

This step is ongoing. You gain a guide to the financial industry - one who will always act in your best interest, and who is always ready to help you and your family overcome life's financial obstacles.

Included in this step:

  • Fiduciary Standard

  • Independent Registered Advisors

Fiduciary Standard

Chicago Partners acts as a fiduciary - the highest standard of care a financial advisor can provide you.

Being a fiduciary is a legal obligation that requires an advisor to always act in your best interest.

The Fiduciary Standard provides a higher standard of care compared to the Suitability Standard that most brokers, financial planners, and agents are required to follow. The Suitability Standard allows an advisor to recommend financial advice as long as it's suitable for you, even though it may not be in your best interest.

For example, assume Funds A and B provide the same investment for you:

  • Fund A charges you 0.25% of your investment and pays no commission to the advisor recommending the investment.
  • Fund B charges you 1.00% of your investment and pays a 0.50% commission to the advisor recommending the investment.

A fiduciary is legally required to invest your money only in Fund A. A broker following the Suitability Standard would be allowed to invest your money in Fund B and accept a commission, even though there's a better investment option available to you.

Independent Registered Advisors

Chicago Partners is a private, employee-owned independent registered investment advisor (RIA).

Acting as a fiduciary allows us to keep client fees low because we avoid commercial advertising costs and public shareholder pressure.