The Fiduciary Responsibility of Registered Investment Advisors

April 17, 2020 - 4 minutes read

The Fiduciary Responsibility of Registered Investment Advisors

Who was your first fiduciary advisor? A parent? Your best friend? A coach? Who is it that always put your interests first? Whether motivated by love and/or obligation, having someone who puts your interests first is incredibly valuable.

Who was your first fiduciary advisor?

Who was the first person who put your needs before their own?

The Stink of Self-interest

However, think of the people who try to sell you a service or product that you aren’t sure you need or want. In those uncomfortable situations, you know they’re in it for themselves. The stink of self-interest is undeniable. You know they are attempting to enrich themselves at your expense. As a result, trust dies an ugly death.

Visualize Fiduciary Relationships

But how would it be if your auto mechanic acted in a fiduciary capacity? Imagine an automotive expert who clearly tells you what what your car needs (or doesn’t). Because he is truly looking out for you, no suggestions are influenced by short-term benefits to his pocketbook. This fee-only car repair expert is motivated and rewarded by keeping you as a satisfied client (and earning your referrals). As a result, your vehicle’s efficiency, safety and usable life all improve dramatically. And, as that auto repair expert puts your long-term needs first, his needs are subsequently met.

A mechanic with fiduciary responsibility?

What if you could trust your car mechanic the way you can trust a Registered Investment Advisor?

A World Without Trust?

What if traditional fiduciary relationships suddenly disappeared? For example, how might a defense attorney perform his or her job differently if the client’s interests now come second? Likewise, how high would bail be set if the judge also owned the local bail bond service? Conflicts of interest would abound. There are certain people that we trust. What would happen if they were to suddenly place their own needs above anyone else’s?

Our Fiduciary Responsibility

As Registered Investment Advisors, we have a legal and ethical responsibility to put our clients’ interests first. Certainly, we take strict care to ensure no conflicts of interest exist. Our incentive is to provide the best options for your investment goals. Consequently, we earn our living by managing your assets, not selling things to you. As fiduciary advisors, we take our role very seriously. As a result, you can trust that we have thoughtfully prepared investment advice with your best interests in mind. There is significant value in that.

Fiduciary responsibility of Registered Investment Advisors

Doing what is right for you is the first thing we do.

If you are actively investing, or thinking about starting, visit with a Registered Investment Advisor. To learn more about what an Investment Advisor should do for you, click here to download our free eBook 3 Things an Investment Advisor Should Do for You”.

3 Things an Investment Advisor Should Do for You








Anatoliy Cherevach is a Chartered Financial Analyst and a Portfolio Manager with Kunath Karren Rinne & Atkin, LLC, with over 19 years of portfolio management and security analysis experience. Prior to joining KKRA, he was a Portfolio Manager and Research Analyst with Cohen & Steers. Anatoliy holds an MBA in finance from Pacific Lutheran University. He is an active member of the CFA Institute and CFA Society Seattle. 

Anatoliy Cherevach



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