Fiduciary Standard v. Suitability Standards
March 2017
In our litigation practice we have many law firms contacting us to review, prepare reports and testify on poor performing investments. The key aspect to understanding whether your advisor did a good job, is understanding the difference between fiduciary standard and suitability standard. In fiduciary standard the financial advisor has a duty to act in your best interest not to steer you into overpriced investment products. Under suitability standard the financial advisor is under no obligation to find the best deal for you. This is probably why you rarely see an investment advisor invest someone into treasury bills or no load efficient mutual funds.