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Are
You A Fiduciary? Read On! |
Simply
put, a "fiduciary" is someone
who is managing the assets of another
person and stands in a special relationship
of trust, confidence, and/or legal responsibility.
A fiduciary is required by law to always
act in the best interests of their client,
beneficiary, or retirement place participant.
For example, if you serve as the trustee
of a personal trust or a member of an
investment committee of a retirement plan,
foundation or endowment, you are a fiduciary
and held to certain standards. Yet, many
fiduciaries are not even aware of their
duties and responsibilities. It is to
your benefit to work closely with an advisor
who is familiar with fiduciary practices.
Definition
of fiduciary adviser. A fiduciary may
be: (1) a registered investment adviser
under the Investment Advisers Act of
1940; (2) a bank or similar financial
institution, but only if provided through
a trust department subject to periodic
examination and review by federal or
state banking authorities; (3) an insurance
company; (4) a person registered as
a broker or dealer under the 1934 Securities
Act; (5) an affiliate of a person described
in (1) through (4); or (6) an employee,
agent, or registered representative
of a person described in (1) through
(5). Source: Pension Protection Act
of 2006.
Last
June I earned the Accredited Investment
Fiduciary (AIF) designation, having
successfully completed a specialized
program on investment fiduciary standards
of care at the Center for Fiduciary
Studies. The Center, in association
with the University of Pittsburgh Joseph
M. Katz Graduate School of Business,
was established in 1999 to provide the
investment industry with the first full-time
training and research facility focused
exclusively on investment fiduciary
responsibility and portfolio management.
"AIF
designees have acquired a thorough knowledge
of fiduciary responsibility and can
be an invaluable resource to investment
fiduciaries and individual investors
alike. The AIF designation represents
that person's knowledge of a Global
Fiduciary Standard of Excellence and
their application of the global standard
into their own practice. AIF designees
have the training necessary to ensure
that an investment process is managed
to an appropriate fiduciary standard
of care." Source: Center For Fiduciary
Studies.
If
you are a fiduciary, I would be pleased
to meet with you to determine how our
firm might be of help in making certain
you're covered on all bases.
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Please
Email bob@cfsias.com
with your questions.
Other
Finance Archive Articles
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INSIDE
FINANCE will appear regularly,
addressing financial matters of
interest to our readers. Any questions?
Email bob@cfsias.com
If
you wish to review your investment
portfolio, please contact me for
a complimentary consultation: bob@cfsias.com
973-826-8800. Registered Representative,
Securities offered through Cambridge
Investment Research, Inc., a Broker/Dealer,
Member NASD/SIPC. Cambridge and
CFS are not affiliated.
The
preceding article is for informational
purposes only and should not be
used as the primary basis for an
investment decision. Indices mentioned
are unmanaged and cannot be invested
into directly. Past performance
does not guarantee future results.
All examples given are hypothetical
and do not reflect actual investments.
There may be additional risks associated
with international investing such
as: currency risk, economic and
political risk, and differences
in accounting practices. Consult
your advisor to consider your risk
tolerance before investing internationally.
The views expressed in this article
are those of the author and are
not necessarily those of Cambridge.
Bob Jaffe is Managing Director of
CFS Investment Advisory Services,
LLC in Totowa and has been a Clifton
resident since 1984. Active in community
affairs, Bob is Past Board Chairman
of the North Jersey Regional Chamber
of Commerce and president of its
foundation board. He serves as a
commissioner on the Clifton Rent
Leveling Board and is President
of the Clifton Rotary Club. Representatives
of Cambridge do not offer tax or
legal advice. Consult a professional
for your personal situation. |
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