What is Fiduciary Responsibility and the New R.F.P. Standard

What does fiduciary responsibility actually mean? Meagan Balaneski explains why it’s a higher bar and how the IAFP added a new fiduciary standard for R.F.P.s in 2026.

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Fiduciary responsibility. Talk to me a little bit about what does that mean, why should my listeners care?

And where is all that headed with the various components, the various designations you see in the industry right now?

Yeah, absolutely. So, uh, fiduciary standard is a legal term that is recognized as working for the client self, almost as an agent for the client. So not only are you working in their best interests, you are working exclusively in their interests. Um, so an example would be that if you had a best interest standard, you would be beholden to choosing the right option within this sandbox, if you have a fiduciary standard, you recognize that there’s actually a tax problem.

You’re here to solve a, an investment situation, there’s a tax problem, and so you are compelled. To recognize that issue and either bring in the professionals, just notify the clients or solve it yourself if, if it’s, um, able to be solved as a bigger part of the experience. It’s a higher standard from the client’s perspective and it’s very, very specific and detailed.

So the fiduciary standard is tied to, and this is our first year for, um, 2026. The IAFP says that professional registered financial planners RFPs must attest to being a fiduciary. Um and what that says is, I, it follows me and my principles as a person. If you follow the designation and you say, this is a fiduciary standard, now, that’s everything that you’re doing. So that, that’s following the person and not necessarily the role.

No.

And so that started this year.

Yeah, it was a work in progress. Uh, I believe for the better part of 2025, if not before that. And, uh, finally, the renewals for 2026. When you renew your professional designation, you must attest to abiding by a fiduciary standard.

No, I love it.