A fiduciary is any investment professional or financial advisor who is required by law and practice to act solely in the interests of and with undivided loyalty to their clients. A fiduciary’s advice and recommendations must align with your specific objectives, timeframe, and risk tolerance. When managing your assets, a fiduciary must strive for an optimal balance of risk and return. That person must exercise care, skill, diligence, and objectivity in evaluating, recommending, and reviewing investment options. Any advisor you hire to manage your investments in a fiduciary capacity is professionally obligated to ensure that:
Since 1999, the Center has served as the standards-setting body of fi360, the investment industry’s leading source of insights, education, and advocacy on all aspects of fiduciary responsibility. The Center’s team of subject matter experts includes experienced investment professionals, attorneys, technologists, and educators, all of whom share a commitment to promoting the widespread adoption of the fiduciary standard and helping investment professionals deliver the highest level of service to their clients.
The Center has leveraged its extensive knowledge of state and federal fiduciary regulations and its research into the processes employed by successful investment professionals to create the Prudent Practices for Investment Fiduciaries. Published in separate handbooks for investment advisors, investment managers and investment stewards, the Practices provide guidance on all aspects of investment management, including asset allocation, fund evaluation and selection, performance monitoring, reporting, governance and compliance.
Educational programs are available to promote widespread adoption of the Practices and instruct advisors in their practical application. In addition, the AIF® Designation formally distinguishes advisors who understand and follow the Practices.
To maintain the Designation, AIF® Designees must complete continuing education training to keep up to date with changes in the industry and the ongoing evolution of legal requirements under the fiduciary standard. They also must recognize and formally affirm the principles and obligations stated in the Designee Code of Ethics, which governs their professional and ethical conduct.