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Is Facet Wealth a Fiduciary? The Ultimate Guide

Is Facet Wealth a Fiduciary

In the complex world of finance, working with trustworthy professionals who prioritize your financial well-being is essential. This is where the concept of fiduciary responsibility comes into play. 

So, is Facet Wealth a fiduciary?

Not all financial advisors operate under the fiduciary standard, but Facet Wealth is known for its commitment to prioritizing clients’ interests. 

In this article, we will dive deep into whether Facet Wealth truly upholds fiduciary responsibilities, why it matters to investors, and how it compares to other investment advisory firms.

Understanding Fiduciary Responsibility

What is Fiduciary Responsibility?

Fiduciary responsibility is a legal obligation that requires financial advisors to act in the best interests of their clients. This standard goes beyond merely recommending suitable investments and extends to prioritizing clients’ financial well-being above all other considerations. 

By prioritizing fiduciary responsibility, advisors are expected to provide transparent advice, mitigate conflicts of interest, and continuously act in clients’ best interests.

Distinction from the Suitability Standard

The suitability standard, on the other hand, focuses on ensuring that recommended investments are suitable for clients based on their financial circumstances. 

However, advisors operating under this standard may not be obliged to prioritize clients’ interests above their own. 

This distinction highlights the importance of selecting advisors who operate as fiduciaries, providing an extra layer of protection and transparency for investors.


Is Facet Wealth a Fiduciary? Assessing Facet Wealth’s Fiduciary Status

Regulatory Landscape

Facet Wealth operates as a registered investment advisor under the oversight of the U.S. Securities and Exchange Commission (SEC). 

As a registered investment advisor, Facet Wealth is obligated to adhere to the fiduciary duty. It is important to note that while Facet Wealth as a company upholds fiduciary status, individual advisors within the firm may also have varying fiduciary responsibilities determined by their specific registrations and designations.

Business Model and Fee Structure

Facet Wealth stands out in the industry as a fee-only advisory firm. Under this model, their revenue is derived exclusively from the fees charged to clients, eliminating potential conflicts of interest created by commissions or third-party payments. 

By aligning their incentives with clients’ goals and prioritizing transparency, the fee-only structure reinforces their fiduciary commitment.

Investment Recommendations

Facet Wealth’s investment recommendations are rooted in comprehensive financial planning tailored to clients’ needs. Their advisors undergo rigorous training and possess relevant certifications, such as the Certified Financial Planner™ certification. 

This ensures that Facet Wealth advisors provide clients with well-informed and unbiased advice. It is worth noting that while Facet Wealth endeavors to act in their clients’ best interests, no advisory firm can guarantee investment success.

Comparing Facet Wealth to Other Investment Advisors

The Suitability Standard and Non-Fiduciary Advisors

Many traditional brokerage firms operate under the suitability standard, which means they are not legally obligated to prioritize clients’ interests above their own. 

This creates the potential for conflicts of interest, as advisors may recommend investments that may not be the most suitable or cost-effective for clients. Unlike these non-fiduciary advisors, Facet Wealth consistently maintains a fiduciary commitment.

Facet Wealth’s fiduciary duty ensures that their advisors have a legal obligation to act in the best interests of clients. By prioritizing clients’ financial well-being, Facet Wealth mitigates conflicts of interest and promotes transparency. 

This commitment allows clients to trust that the advice they receive is unbiased and intended to optimize their financial goals.

Hybrid Models and Varying Commitments

While some investment advisors claim to be fiduciaries, it is vital to scrutinize their business models and fee structures. Some firms offer hybrid models, where they provide both fiduciary and non-fiduciary services. 

In such cases, investors should carefully evaluate an advisor’s fiduciary commitment to ensure consistent and reliable fiduciary responsibility.

Facet Wealth distinguishes itself by exclusively providing fiduciary services. As a fee-only advisory firm, Facet Wealth’s revenue is derived exclusively from the fees charged to clients. 

By eliminating potential conflicts of interest created by commissions or third-party payments, Facet Wealth aligns their incentives with clients’ goals and ensures their fiduciary commitment is upheld. 

This straightforward fee structure reinforces trust and allows clients to make informed decisions knowing that their advisor’s recommendations are based solely on their best interests.

In summary, Facet Wealth’s fiduciary commitment sets it apart from traditional brokerage firms operating under the suitability standard and from advisors who offer hybrid models. 

By consistently adhering to the fiduciary duty and maintaining a fee-only structure, Facet Wealth safeguards the interests of their clients and reinforces trustworthiness in the industry.

fiduciary advisor

Frequently Asked Questions

What distinguishes a fiduciary advisor from a broker or non-fiduciary advisor?

A fiduciary advisor is legally obligated to act in the best interests of their clients, while brokers and non-fiduciary advisors are held to the suitability standard, which permits them to recommend investments that may not be the most advantageous for clients.

Can an advisor be a fiduciary in certain circumstances and not in others?

Yes, advisors may act as fiduciaries in specific situations, such as managing retirement accounts, while adhering to the suitability standard in other areas of their practice. Investors must clarify an advisor’s fiduciary status and commitment across the entirety of their services.

How can investors ensure they are working with a fiduciary advisor?

Investors should inquire about an advisor’s business model, fee structure, and regulatory obligations. Explicit language, found in client agreements and marketing materials, highlighting fiduciary responsibility is a clear indication of an advisor’s commitment.

How does Facet Wealth ensure its advisors act in clients’ best interests?

Facet Wealth maintains a robust training program for their advisors and requires them to obtain relevant certifications. Additionally, their fee-only structure eliminates potential conflicts of interest commonly found in commission-based compensation models.


Facet Wealth clearly demonstrates its commitment to fiduciary responsibility through its fee-only structure, comprehensive financial planning approach, and adherence to regulatory standards. 

While it is vital for investors to conduct their due diligence and consider an advisor’s fiduciary status, Facet Wealth’s dedication to transparency and clients’ best interests sets a high standard for the industry. 

By selecting an advisor who operates as a fiduciary, investors can confidently navigate the financial landscape, secure in the knowledge that their advisor is legally bound to prioritize their financial goals and interests.