Fee-Only and Fiduciary

Resource Advisory Services was inspired in its beginning by a small group of financial planners who created National Association of Personal Financial Advisors. The concept of Fee-Only Financial Planning was the cornerstone of NAPFA’s early discussions. Around 1990, as the culture of NAPFA evolved, the word “Fiduciary” took center stage. The Fiduciary Oath that follows was written. All NAPFA members are required to sign this oath annually with their membership renewals.

NAPFA’S FIDUCIARY OATH:
The advisor shall exercise his/her best efforts to act in good faith and in the best interests of the client. The advisor shall provide written disclosure to the client prior to the engagement of the advisor, and thereafter throughout the term of the engagement, of any conflicts of interest, which will or reasonably may compromise the impartiality or independence of the advisor.

The advisor, or any party in which the advisor has a financial interest, does not receive any compensation or other remuneration that is contingent on any client’s purchase or sale of a financial product. The advisor does not receive a fee or other compensation from another party based on the referral of a client or the client’s business.

What the Fiduciary Oath means to you:

  • The advisor shall always act in good faith and with candor.
  • The advisor shall be proactive in disclosure of any possible conflicts of interest.
  • The advisor shall not accept any referral fees or compensation that is contingent upon the purchase or sale of a financial product.