A fiduciary is a professional who is legally and ethically required to act in your best interest. In the investment advisory context, that means your adviser must place your interests ahead of their own when providing advice and must operate with honesty, care, and transparency.

At Fiduciary CM, we believe that fiduciary responsibility is more than a legal standard—it is the foundation of a trusted advisory relationship.

Why Fiduciary Duty Matters

When you work with a fiduciary adviser, you should expect advice that is aligned with your financial goals, needs, and overall circumstances. Fiduciary duty is designed to help ensure that recommendations are made with care, in good faith, and with full disclosure of material conflicts of interest.

This matters because financial decisions can have a lasting impact on your future. Working with a fiduciary can provide confidence that your adviser is held to a high standard of conduct.

What Fiduciary Duty Means

Under the Investment Advisers Act of 1940, investment advisers are generally held to a fiduciary standard that includes two core obligations:

Duty of Care
An adviser must provide advice that is in your best interest based on your financial situation, investment objectives, and risk tolerance.

Duty of Loyalty
An adviser must place your interests first, provide full and fair disclosure of material conflicts, and avoid misleading statements or conduct.

What a Fiduciary Does Not Mean

Fiduciary duty is an important protection, but it does not mean:

• Your adviser must always recommend the lowest-cost option
• Conflicts never exist
• Every recommendation will outperform the market
• Losses can be avoided entirely
• Your adviser will always agree with your preferences

Instead, fiduciary duty means your adviser must act in your best interest, communicate clearly, and provide advice with integrity and transparency.

How Fiduciary Advisers Are Paid

Fiduciary advisers may be compensated in different ways, depending on the services provided. Common structures include:

Fee-Only
Compensation is paid directly by the client, such as through flat fees, hourly fees, or a percentage of assets under management.

Commission-Based
Compensation is tied to the sale of certain financial products.

Fee-Based
A combination of advisory fees and commissions may apply.

Regardless of the compensation model, a fiduciary adviser should clearly disclose fees, costs, and material conflicts of interest so clients can make informed decisions.

Our Commitment

At Fiduciary Capital Management LLC, we believe clients deserve advice delivered with care, loyalty, and transparency. We are committed to helping clients better understand their options and make informed decisions within a fiduciary framework.