Seven Uniform Fiduciary Standards of Care**
As an Accredited Investment Fiduciary, Scott adheres to the following standards of care for all clients’ accounts:
1 – Knowledge of Standards, Laws, and Trust Provisions – The fiduciary (AIF®) has the requirement to be informed and current regarding these areas.
2 – Diversification of Assets – The duty to diversify is one of five Fiduciary Safeguards. Buttfield & Associates and First Affirmative Financial Network, LLC, when recommended for Asset Management, meet this standard through the use of risk/return profiles and a set Asset Allocation matched to the specific profile of the client.
3 – Preparation of the Investment Policy Statement – The IPS is a written document that establishes procedures for making and evaluating investment decisions, provides a long-term strategy for managing client assets, and minimizes the potential for costly, emotional reactions*.
4 – Use of “Prudent Experts” – Another duty* of a fiduciary (AIF®) is to not only delegate and utilize specialists, but to also document how they are chosen.
5 – Control and Account for Investment Expenses – Costs must be competitive for the given level of service, and must be fully disclosed.
6 – Monitoring of Money Managers – Fiduciaries are responsible for making sure managers avoid style or asset-class drift, the risk/return policy is maintained, and meaningful and clear quarterly reports are delivered.
7 – Avoidance of Conflicts of Interest – By implementing an investment program through an independent, fee-based advisor, with professional money managers and no proprietary and/or commission based products, under a clearly documented process (IPS), we seek to minimize a client’s exposure to potential conflicts of interest. Any conflicts that may arise are fully disclosed.
*Buttfield & Associates meets this standard through the use of risk/return profiles and a set Asset Allocation matched to the specific profile of the client.
** Author: Donald Trone, AIF®, fi360