What Is A Fiduciary?

A fiduciary is someone who has undertaken to act for, and on behalf of, another in a particular matter of circumstances which give rise to a relationship of trust and confidence.  A fiduciary duty is the highest standard of care at either equity or law.  The word itself comes from the Latin fides, meaning faith, and fiducia, meaning trust.

GCI Financial Group, Inc. and our representatives embrace a fiduciary role for our clients.

What does this mean for our clients?  While it is harder and harder to differentiate these days, there is a meaningful difference between a fiduciary and a financial advisor.  Many in our industry call themselves Financial Advisors, Wealth Managers, Financial Planners or some other moniker that invokes a sense of prestige and experience.  In reality, the vast majority of financial advisors ("brokers") are commissioned salespeople.

This is not to cast a dark cloud over the brokerage industry or its members, but the stark reality is that a stockerbroker at a large wirehouse has a responsibility to the firm first and foremost.  They are salespeople, and it is their job to sell.  They are held to a "suitability" standard which means that they are supposed to reasonably believe that the products that they sell are appropriate (or suitable) for their respective client's/customer's particular situation.

At GCI Financial Group, Inc. our representatives must place the interests of our clients first.  We must act solely in the best interest of our clients, even if that is in direct conflict with our own financial interest.  This is not a marketing statement, but a legal requirement which we uphold with the firmest of ethical standards.