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Working in Your Best Interest

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Updated July 7, 2020

Trust Point

We are proud of Trust Point’s century of service reputation of excellence. But, our approach and purpose has always been focused on the future. Not just our own company’s future - but, more importantly, our client’s futures.

As of June, a new Regulation Best Interest (Reg BI) rule from the Securities and Exchange Commission (SEC) requires all broker-dealers to be held to a “best interest” standard of conduct with their clients. 

This “fiduciary standard” is designed to level the playing field for financial advisors, planners and institutions, requiring them to place their interests below that of their clients when managing and recommending investments. Prior to the change, retail brokers were held to a “standard of suitability.” That meant that a broker was required to make recommendations that were suitable based on a client’s situation, but the advice did not have to be in the client’s best interest.

Trust Point, which is not regulated by the SEC, has a more-than 100-year head start in acting on our clients’ behalf. We are and always have been a true fiduciary, operating under the philosophy that in doing what is best for clients, we are doing what is best for Trust Point.

“The rule is meant to make sure that anyone seeking investment advice or guidance is given the best and most truthful information out there,” says Trust Point Vice President of Investments, Randy Van Rooyen.  “Trust Point, in its 107- year history, has always been held to that fiduciary standard. So we have constantly and always done what’s in our clients’ best interest.”

The new rule also requires a more thorough disclosure of conflicts of interest from brokers, so they aren’t selling products that are based on commission or kick-backs, Van Rooyen says. As a Fiduciary, Trust Point doesn’t have these issues. Fees are completely transparent and charged based on assets under management—fees are directly related to account performance.

Even though the Reg BI rule doesn’t apply to Trust Point, Van Rooyen says it’s the company’s duty to stay on top of constantly evolving legislation and regulations.

“It is Trust Point’s responsibility to stay on top of industry-related regulations that could impact our clients,” he says.  “As their trusted financial partner they expect us to be a resource and provide answers to their financial questions.”

To learn more about what it means to be a fiduciary, check out this video and related article.

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Trust Point

We are proud of Trust Point’s century of service reputation of excellence. But, our approach and purpose has always been focused on the future. Not just our own company’s future - but, more importantly, our client’s futures.