The Institute for the Fiduciary Standard recently released a new code of conduct for financial advisers to follow.
The best practices statement of the code is the basis of the Fiduciary Advisor Affirmation Program that defines tasks to ensure advisers offer client-focused service, according to a Sept. 19 news release from the nonprofit organization.
It’s the first announced program that allows advisers to show they are committed to serving their clients’ best interests since the U.S. Department of Labor released its new fiduciary rule in May.
“We seek to address the new world for financial advice, in which investors have unprecedented choice and access in selecting services and support,” Knut Rostad, president of the IFF, said in the release. “Our program will enable advisers to demonstrate that they deserve clients’ trust, with guidance that is distinguished by clarity, transparency and honest in both word and deed.”
Advisers who choose to be a part of the program must include the institute’s code of conduct on their website and a disclosure in their ADV filing with the U.S. Securities and Exchange Commission.
“These new practices express, in plain language, concrete duties that make sense to ordinary investors, all focused on how advisers can best demonstrate their total alignment with the client’s needs and goals,” Rostad said.
In 2011, the Institute for the Fiduciary Standard was established to provide research, education and advocacy on the fiduciary standard for investors and the capital markets.