Most Popular ArticlesNovember 3, 2009
I shall act with loyalty and utmost good faith toward my client
I affirmatively disclose all material facts to my client – i.e., any fact which might affect my client’s decision – in a manner which ensures client understanding.
At all times I act with utmost good faith toward my clients – i.e., with perfect candor, openness, and honestly, avoiding any concealment or deception, however slight.
These disclosures necessarily include a disclosure of all of the fees and costs of any investment or insurance product I recommend, which total fees and costs I have ascertained, or at least estimated, through my due diligence.
I seek to avoid material conflicts of interest with my client. While conflicts of interest are not prohibited under my duty to act in my client’s best interest, I recognize that each conflict of interest may erode the trust and confidence of my client. I recognize that certain conflicts of interest might be so egregious that the relationship of trust and confidence with my client would cease to function. These must especially be avoided.
When conflicts of interests exist, I provide specific disclosures of the conflict of interest and its ramifications for the client.
I disclose in advance all of the fees and other compensation either my firm or I receive in connection with any proposed transaction.
I recognize that mere casual disclosures, such as “there are other facts which may interest you, which can be found over there,” are wholly inadequate to meet my obligation to the client. I ensure that my clients actually receive, and review, all of the disclosures provided.
I also recognize that, regardless of the form of my compensation, and despite my efforts to avoid conflicts of interest, I will always possess some remaining conflicts of interest with my client. For these remaining conflicts I will obtain my client’s informed consent.
I will never, by undue influence, induce my client’s consent.
I will always properly manage any remaining conflict of interest to ensure that the transaction remains at all times fair and reasonable to the client. I realize that no client would ever provide informed consent to a proposed transaction that is not in that client’s best interest.
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