What’s Appropriate for your Organization?
A fiduciary investment adviser can serve in either a 3(21) or 3(38) fiduciary capacity, and in some cases, both. Capital Strategies can act as either or both.
Comparison of Advisor’s Duties
The following grid outlines some of the key differences in the role of the investment adviser and that of the client, which is typically a Committee or individual.
|Written fiduciary status – adviser acknowledges a fiduciary role without the ability to take discretion.||Written fiduciary status – adviser acknowledges a fiduciary role with the use of discretion.|
|Drafts Investment Policy aligned with client goals and objectives. Policy adopted by client.||Drafts Investment Policy aligned with client goals and objectives. Policy adopted by adviser.|
|Recommends investments to the client. Decisions made by the client.||Makes investment decisions and reports them to the client.|
|Assists in implementing action at the direction of the client.||Takes actions. Notifies client before or after actions are taken.|