Our fiduciary status impacts all of our business practices
A financial fiduciary is a firm or person who holds a position of trust. Nothing is more important than trust when it comes to a firm or professional that provides advice and services that impact:
- When you retire
- How you live during retirement
- Your financial security late in life when you need it the most
Fiduciaries are required to always act in the best interests of their clients and not in their own best interests. This is the highest ethical standard in the financial service industry. Firms that are Registered Investment Advisors and professionals who are Investment Advisor Representatives are financial fiduciaries.
At Lucas Capital Management, our fiduciary status impacts all of our business practices that impact our clients’ interests. For example, our only method of compensation is an asset-based fee that is paid to us by our clients. This fee is fully disclosed to our clients in advance and we do not receive any compensation from third parties.
Legal responsibilities and compensation are just two of the characteristics that impact our relationships with clients. We are also required to avoid potential conflicts of interest that would damage the interests of our clients. This is an important characteristic because the financial service industry is loaded with potential conflicts.
We also believe we have a fiduciary responsibility to provide our clients with written documentation for information that impacts their financial interests. Verbal communication is not enough because there is no written record and this type of communication is subject to misinterpretation.