Understanding the difference between a fiduciary, such as a Registered Investment Advisor, and a broker is more important now than it ever has been. A licensed Fiduciary has a defined legal obligation to act in the client’s best interest. In fact, Registered Investment Advisors like Telarray are governed by the Fiduciary Standard; stockbrokers and registered representatives are not. They are held to a lesser measure, the Suitability Standard. Simply stated, the Suitability Standard merely calls for brokers to sell investments they believe are suitable for their clients, not necessarily what’s best for the client. Investors mistakenly believe that brokers are required to put their clients’ interests first. They are not. Brokers are ultimately salespeople who are generally compensated by commission, or a production based bonus, and whose primary loyalty is to their employers. To avoid any confusion and to make certain your best interests are always first and foremost, simply ask your financial professional under what standard they operate. Make certain they operate under the Fiduciary Standard. Any standard other than FIDUCIARY means your best interest might not be your financial professional’s number one priority.