Fiduciary Duty
Virtue Asset Management is a fee-only, fiduciary financial planning firm serving the Chicago area. Our advisors are paid by clients, not through commissions, so their compensation is not tied to the products they recommend.
Fiduciary Duty
A fiduciary is a person or entity that is legally and ethically bound to act in the best interests of another party, known as the beneficiary or principal. The fiduciary relationship is characterized by a high level of trust and confidence, and the fiduciary is expected to prioritize the interests of the beneficiary over their own.
As a registered investment adviser, Virtue Asset Management owes its clients a fiduciary duty under the Investment Advisers Act of 1940. That means we must put your interests ahead of our own and eliminate or fully disclose conflicts of interest.
Fiduciary Duty for Investment Advisers
Financial advisors who are fiduciaries have a legal obligation to act in their clients’ best interests when providing investment advice or managing their portfolios.
Duty of Loyalty
A fiduciary has a legal obligation to act solely in the best interests of the beneficiary and to disclose conflicts of interest. They must act with the utmost loyalty and good faith when making decisions on behalf of the beneficiary.
Duty of Care and Prudent Judgment
Fiduciaries are expected to exercise prudence and care in managing the assets or affairs of the beneficiary. This means making informed and responsible decisions based on the beneficiary’s objectives and risk tolerance.
How Virtue Meets the Fiduciary Standard
Our advisors are legally and ethically bound to act in the best interests of their clients as fiduciary advisors. Our fiduciary duty requires us to prioritize clients’ interests over our own and to avoid or fully disclose conflicts of interest.
Fiduciaries must exercise prudence, loyalty, and full disclosure when providing advice or managing the client’s assets. This standard means recommendations must be in the client's best interest, even when another option would pay the adviser more.
Fee-Only (No Commissions)
Virtue Asset Management is composed of fee-only financial advisors. We are compensated solely by the client with neither the advisor nor any related party receiving compensation that is contingent on the purchase or sale of a financial product.
Neither Members nor Affiliates may receive commissions, rebates, awards, finder’s fees, bonuses or other forms of compensation from others as a result of a client’s implementation of the individual’s planning recommendations. We charge an asset-based advisory fee that we disclose in our Form ADV and client agreements, and we provide periodic reporting to help clients understand the fees they pay.
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Frequently Asked Questions
A fiduciary financial advisor is legally required to act in your best interest, disclose conflicts of interest, and base advice on your goals and risk tolerance.
Ask whether they act as a fiduciary for all advice and how they are paid, and read their Form ADV Part 2A and Form CRS. You can look up any adviser at adviserinfo.sec.gov.
As fiduciary financial advisors, we are required to act in our advisory clients’ best interests. Because we operate on a fee-only basis and do not receive commissions, we seek to reduce conflicts of interest and clearly explain the fees and costs associated with your investments, so your financial well-being remains the primary focus.
Fiduciary advisers tailor advice to your goals and disclose material conflicts. As a fee-only adviser, we reduce many common conflicts by not accepting commissions.
It requires advice to be based on your goals, risk tolerance, and disclosed costs. We are fee-only, disclose potential conflicts, and do not receive commissions.
Fiduciary financial advisors prioritize advisory clients’ financial well-being with transparent, fee-only advice, ensuring your best interests come first. We develop customized strategies focusing on tax efficiency, long-term growth, and risk management. Our ethical approach ensures that every decision benefits our clients’ financial future and minimizes conflict.
They must disclose material conflicts and put client interests first. We use a fee-only model and disclose our fees in our Form ADV. All investing involves risk, including loss of principal.