FAQ's
Answers brought to you by Insight & Direct Experience
Q. What is a fiduciary?
A. The standard of conduct in a fiduciary relationship is quite strict. Ethical practices include the following:
1. Duty of loyalty: The fiduciary must act solely in the best interests of the beneficiary and must avoid any conflicts of interest.
2. Duty of care: The fiduciary must exercise reasonable diligence and prudence when managing assets or making decisions, acting with skill and caution. 3. Duty of disclosure: The fiduciary must be transparent and forthright, disclosing all relevant information that could impact the beneficiary's decisions.
4. Duty of confidentiality: The fiduciary must keep a beneficiary's private information and affairs confidential.
Source: https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct
Here at Provident we strive to adhere to all of these standards and more!
Q. How can our services help clients reach goals?
A. We will help you turn your vague financial aspirations into clear, actionable goals and help co-create a customized road map. In a grounded collaborative relationship we can meet and exceed your goals around money and resource management in whatever life stage you are in. Through our decades of experience we will facilitate a sound investment strategy tailored to your risks tolerance, while maximizing growth & minimizing taxes. At Provident, we strive to protect you from bad investments and unnecessary fees with objectivity and integrity.
Q. What is our investment philosophy?
A. Our overarching philosophy is in our name. In order to be Provident we must "look ahead, prepare & supply". We deploy an active form of planning by anticipating future needs. Through diligent research we use wise allocation of resources available to make strategic and selective purpose-driven actions that are aligned with your values. We intend to bridge the gap between seeing and doing, while always keeping your best interest in mind.
Q. What Regulation B. I.?
A. Regulation Best Interest, as it's known, was set in place in June 2020 by the SEC (U.S. Securities and Exchange Commission). The main goals were to require more accountability and transparency from broker-dealers. Firms and brokers were held to higher standards to Identify, disclosure and mitigate any conflict of interest, suitability for recommendations and that said recommendations are appropriate and not in excess.
Reg BI vs. Fiduciary Duty
The "best interest" standard under Reg BI for broker-dealers differs from the fiduciary duty for registered investment advisers (RIAs). Reg BI applies to broker-dealers when making a recommendation, while a fiduciary duty applies to investment advisers throughout their entire relationship with a client.
Q. Why does Provident Investment Advisors exist?
A.
Q. What we think partnering with a financial advisor should look like?
A.
Q. How can moving to an advisory only versus a brokerage relationship benefit me?
A.