• Fully disclosing all fees clients pay and that firms earn.
• Putting disclosures and agreements in plain language writing.
According to the Institute for the Fiduciary Standard, mitigating material conflicts means, “at minimum, receiving appropriate client consent in writing before executing the recommendation” and only after explaining the conflict both orally and in writing to clients in a manner that highlights any additional compensation the advisor receives as a result of a recommendation.
Real Fiduciary advisors are also required to document and be prepared to demonstrate that conflicted advice remains “reasonable and fair and consistent with the client’s best interest.”
An advisor can explain his or her compensation in a few sentences, the e-book states.
The e-book is available at https://thefiduciaryinstitute.org/new-fiduciary-common-sense-guidance-helps-investors-find-fiduciary-advisors/