Redrock is the only CEFEX Certified Fiduciary Advisor in Las Vegas
Why Settle For A “Run Of The Mill” Fiduciary?
What is CEFEX certification?
Many financial advisors say they’re a fiduciary, but very few will put that in writing. Fewer still will spend the extensive amount of time and money to actually have it verified from an independent auditor.
We believe it’s critical to delivering the absolute best in retirement, financial, and investment planning for all of our private wealth management and 401k plan clients.
Why is CEFEX certification important?
Structured due diligence processes force rational investment and service selection, thereby ensuring the best value for the portfolio.
The investment process is not hostage to market swings. The process anticipates all types of conditions and can rationally account for investment outcomes.
A well-structured process virtually eliminates deficiencies in portfolio management. The decision rules would not allow it!
Disclosure alone is often insufficient to help investors. The fiduciary process leads to a more educated client who can better understand the components of their portfolios. The process should enable greater personalization, based on risk preferences and financial needs.
What are the CEFEX certification benefits to clients?
Feb. 4, 2014.
Documented, repeatable processes are more likely to generate higher returns over time because they are not dependent on timing, luck, and “in-fashion” or un-substantiated decisions.
Far too many advisors operate like black boxes. They cannot (or will not) describe their investment process, thereby avoiding accountability to the investor. The prudent process has nothing to hide.
Independent fiduciary assessments supplement the advisor’s internal compliance practices and their mandatory statutory regulatory compliance. The rules associated with statutory compliance are designed to constrain bad conduct, but it is impossible to set rules for every situation. Independent fiduciary assessments focus oversight on process, so virtually all situations are covered.
The CEFEX-certifed advisor is earning your business on fiduciary principles. The firm is striving to be the best fiduciary in a crowded market!
So what exactly did the CEFEX certification process entail?
The CEFEX process:
Includes review of file administration, information gathering, custody, brokerage, and best execution, using a consistent evidence-based methodology.
Analyzes the Investment Policy Statement and the due diligence process, comparing the advisor’s investment line-up to a standard set of duciary screens. The assessment also reviews how conflicts of interest, if any, are managed and disclosed.
Reviews how asset allocation is based on capital market inputs and risk assumptions used by the advisor. How does the advisor manage risk and return characteristics of the portfolio?
Verifies that client files contain the Service Agreement deliverables, records, and outputs of the investment management process for the specific client.
The CEFEX process-based assessment takes a different approach from the regulator’s rules-based approach. A background check including regulatory, legal and bankruptcy history is also conducted.
Is the person you entrust with your finances a CEFEX certified financial advisor?
Are you willing to entrust your financial future to an advisor who hasn’t put the same efforts into being the very best they can be for you?
You know you should require a fee-only advisor; you’ve probably even heard the term “fiduciary”. It’s time to raise your standards for retirement planning and investment management to a level very few advisors can handle.