Who We Are
We believe all Americans should have access to objective, professional financial advice. Act Two Financial Advisors offers financial planning and advice with no minimum income or net worth requirements.
We believe all investors deserve a fiduciary standard of care when paying for professional financial advice.
Act Two Financial Advisors is a Registered Investment Advisor regulated by the State of Michigan. Registered Investment Advisors are bound to a fiduciary standard that was established as part of the Investment Advisors Act of 1940. The fiduciary standard includes a standard of care and a duty of loyalty. The advisor must place the client's interest ahead of his/her own interests and disclose any potential conflicts.
Brokers are held to a lower standard, the suitability rule. Instead of having to place the client's interest ahead of his/her own interests, the suitability standard only requires that the broker has to reasonably believe that any recommendations made are suitable for clients. The broker's duty is to the broker-dealer he or she works for, not necessarily the client served.
Under the fiduciary standard, an investment advisor would be strictly prohibited from buying an investment because it would pay him/her a higher fee or commission. Under the suitability requirement, this isn't necessarily the case, because as long as the investment is suitable for the client, it can be purchased for the client.
We believe all investors should ask the following questions before paying for professional financial advice:
- Will you put my best interests above all others?
- Will you act with prudence; that is, with the skill, care, diligence and good judgment of a professional?
- Will you provide conspicuous, full and fair disclosure of all important facts?
- Will you avoid conflicts of interest whenever possible?
- Will you fully disclose and fairly manage, in my favor, unavoidable conflicts?
A financial advisor should be able to provide clear and concise answers to all of those questions and be willing to disclose that information in writing.