Fiduciary duty is the legal and ethical obligation for investment advisers to act exclusively in the client’s best interest. For registered investment advisers (RIAs), this standard eliminates conflicts of interest and ensures transparency. At Asset Manager Tech LLC, a SEC-registered RIA, fiduciary duty is embedded in every algorithmic strategy we deploy for sophisticated investors.[ppl-ai-file-upload.s3.amazonaws]interactivebrokers+1
Summary
Summary
What is Fiduciary Duty and How Does it Differ from the Suitability Standard?
Under the Investment Advisers Act of 1940, all RIAs are bound to a fiduciary standard comprising two core components: a duty of care and a duty of loyalty. The duty of care requires advisers to provide advice that is in the client’s best interest, based on the client’s financial situation, investment experience, and investment objectives. The duty of loyalty mandates that advisers eliminate or fully disclose all conflicts of interest and avoid placing their own interests ahead of their clients.interactivebrokers+3
This fiduciary standard contrasts sharply with the suitability standard governing broker-dealers regulated by FINRA. Under the suitability standard, a broker need only recommend investments that are «suitable» or reasonable for a client’s profile, without being required to prioritize the client’s best interest. For example, a broker could recommend a mutual fund with a 5.75% front-end load and annual 12b-1 fees if it meets suitability requirements, even when a lower-cost index fund might better serve the client.forbes+1
| Dimension | Fiduciary Standard (RIAs) | Suitability Standard (Brokers) |
|---|---|---|
| Legal Obligation | Must act in client’s best interest at all times [sec] | Must recommend suitable products based on client profile [forbes] |
| Conflicts of Interest | Must eliminate or fully disclose all material conflicts [interactivebrokers] | May have undisclosed conflicts if product is suitable [seekingalpha] |
| Fee Structure | Typically fee-only or fee-based (AUM or performance) [smartasset] | Commission-based; may incentivize excessive trading [seekingalpha] |
| Regulatory Oversight | SEC (Investment Advisers Act of 1940) [investopedia] | FINRA (self-regulatory organization) [forbes] |
| Who Benefits | Client interests prioritized [interactivebrokers] | Advisor’s compensation may conflict with client interests [seekingalpha] |
Even after the SEC implemented Regulation Best Interest (Reg BI) in June 2020, which elevated broker-dealer standards, the regulation still falls short of the fiduciary duty imposed on RIAs. Asset Manager Tech LLC operates as a SEC-registered RIA, subjecting our firm to the fiduciary standard 100% of the time across all client interactions.law.cornell+1[ppl-ai-file-upload.s3.amazonaws].
A|C Management Tech LLC: Our Commitment to Fiduciary Duty as an SEC-Registered Adviser
Why Do RIAs Operate Under the Fiduciary Standard?
RIAs are regulated by the SEC under the Investment Advisers Act of 1940, which imposes upon advisers an «affirmative duty of utmost good faith» and requires full and fair disclosure of all material facts. This regulatory framework was specifically designed to protect investors from the conflicts of interest that plagued broker-dealer relationships during the era preceding the Act.comply+2
Every SEC-registered RIA must deliver Form ADV Part 2A (the firm brochure) and Form CRS (Customer Relationship Summary) to clients. Form ADV Part 2A provides detailed disclosure about the adviser’s services, fees, conflicts of interest, disciplinary history, and investment strategies. Form CRS is a brief relationship summary designed to help retail investors understand the services offered and key differences between advisory and brokerage relationships.sec+4
What the Fiduciary Standard Requires from RIAs:
- Act in the client’s best interest at all times, not just when providing specific recommendations[sec]
- Make full and fair disclosure of all material facts, including fees, compensation arrangements, and potential conflicts[ria-compliance-consultants]
- Seek best execution for client transactions, ensuring trades are executed at the most favorable terms reasonably available[ppl-ai-file-upload.s3.amazonaws]
- Eliminate or fully disclose conflicts of interest that could affect the advisory relationship[interactivebrokers]
- Provide advice based on a reasonable investigation of investment options appropriate for the client[fi360]
As a SEC-registered RIA, Asset Manager Tech is legally bound to the fiduciary standard. Our performance-based fee structure (35% of net profits) ensures we only succeed when your portfolio grows, creating complete alignment of interests between adviser and client. This structure is permissible under SEC Rule 205-3 for qualified clients meeting minimum asset and net worth thresholds.smartasset+1[ppl-ai-file-upload.s3.amazonaws]
Fiduciary vs. Broker: Which Model is Right for High-Net-Worth Investors?
High-net-worth individuals (HNWIs) managing $500,000 or more in liquid assets face complex wealth management needs spanning tax optimization, estate planning, cross-border considerations, alternative investments, and philanthropic strategies. A fiduciary adviser operating under the RIA model has a legal duty to coordinate these multidimensional planning requirements in the client’s best interest.[ppl-ai-file-upload.s3.amazonaws][sec]
The fee structure differences between RIAs and brokers directly impact advisor incentives and client outcomes. RIAs typically charge transparent fees based on assets under management (AUM) or performance, disclosed upfront in Form ADV. Broker-dealers earn commissions on transactions, along with front-end loads, back-end loads, and 12b-1 fees that may not be immediately apparent to investors. These commission-based structures can incentivize excessive trading—known as «churning»—where the broker generates revenue through frequent transactions that may not benefit the client.seekingalpha+1[ppl-ai-file-upload.s3.amazonaws]
For an HNWI with $2 million in investable assets seeking algorithmic portfolio management, a fiduciary RIA would recommend strategies optimized for tax efficiency and cost minimization. A commission-based broker might recommend actively managed funds with higher expense ratios and transaction costs because such products generate greater revenue, even when passive or algorithmic strategies could deliver superior after-tax returns.[seekingalpha][ppl-ai-file-upload.s3.amazonaws]
| Dimension | RIA Fiduciary Model | Broker-Dealer Model |
|---|---|---|
| Fee Structure | Fee-only or performance-based; transparent [ria-compliance-consultants] | Commission-based; may include hidden loads and 12b-1 fees [seekingalpha] |
| Legal Standard | Fiduciary duty: best interest at all times [sec] | Suitability (or Reg BI): suitable for client profile [law.cornell] |
| Transparency | Full disclosure via Form ADV Part 2A and Form CRS [sec] | Limited disclosure; Form CRS required since 2020 [sec] |
| Ideal Client | HNWIs seeking holistic planning and alignment of interests [ppl-ai-file-upload.s3.amazonaws] | Transactional investors comfortable with commission structures [seekingalpha] |
For investors with $500,000 or more, a digital-first RIA like Asset Manager Tech offers institutional-grade fiduciary management without the overhead costs of traditional wealth management firms. Our model eliminates the typical 1-2% AUM fee drag while maintaining complete fiduciary accountability through our SEC registration.ppl-ai-file-upload.s3.amazonaws+1
How Asset Manager Tech Implements the Fiduciary Standard in a Digital-First Model
Asset Manager Tech operates as a 100% digital, 100% fiduciary RIA—what the SEC classifies as an «Internet-Only Adviser». This purely digital structure eliminates conflicts of interest inherent in hybrid models where firms might be incentivized to sell proprietary products or cross-sell brokerage services.[ppl-ai-file-upload.s3.amazonaws]
How We Live the Fiduciary Standard:
- Performance-based fee alignment: Our 35% fee on net profits means we only earn compensation when client portfolios generate positive returns, creating perfect alignment between adviser and client success[smartasset][ppl-ai-file-upload.s3.amazonaws]
- Independent custody: Client assets are held in segregated accounts at Interactive Brokers, never commingled with firm assets or under direct firm control[ppl-ai-file-upload.s3.amazonaws]
- Algorithmic objectivity: Our quantitative strategies execute based on predefined logic, backtesting, Value at Risk (VaR), and Conditional Value at Risk (CVaR) analysis, eliminating emotional bias that can compromise fiduciary judgment[ppl-ai-file-upload.s3.amazonaws]
- 24/7 transparency: Clients access a digital portal providing real-time visibility into performance, individual trades, fee calculations, and regulatory documents including Form ADV Part 2A and Form CRS[ppl-ai-file-upload.s3.amazonaws]
- Comprehensive disclosure: All marketing materials comply with SEC Marketing Rule 206(4)-1, presenting performance data net of fees, balanced risk disclosures, and no selective presentation of favorable results[ppl-ai-file-upload.s3.amazonaws]
- Regulatory compliance infrastructure: Our policies prohibit material omissions, require reasonable basis for all investment recommendations, and mandate disclosure of conflicts of interest before client engagement[ppl-ai-file-upload.s3.amazonaws]
Our algorithmic approach to portfolio management offers an additional fiduciary advantage: systematic execution free from the behavioral biases affecting human discretionary managers. Strategies are developed using rigorous backtesting and risk management protocols, then executed consistently without deviation based on market fear or greed.[ppl-ai-file-upload.s3.amazonaws]
The digital-first model also enables us to serve qualified clients globally, including U.S.-based HNWIs and sophisticated international investors in markets like Dubai and the UAE, while maintaining full SEC compliance and fiduciary accountability.ppl-ai-file-upload.s3.amazonaws+1
Explore our fiduciary approach | See how our algorithmic strategies work | Learn about our U.S. equity focus
As an SEC‑registered investment adviser, we are legally obligated under the Investment Advisers Act of 1940 to act as a fiduciary to our advisory clients at all times. This fiduciary duty of loyalty and care is not optional marketing language; it is an enforceable legal standard that governs our recommendations, our monitoring of your portfolio, and our handling of conflicts of interest.
You can independently review our regulatory and disciplinary history on the SEC’s Investment Adviser Public Disclosure (IAPD) website by searching our firm name or CRD number. Form ADV, filed with the SEC and available through IAPD, discloses any reportable regulatory events, client complaints, or disciplinary actions, as well as our ownership structure and business affiliations.
Our advisory fee schedule is fully disclosed in Form ADV Part 2A and in your written advisory agreement before you engage our services. We clearly state our fees as a percentage, illustrate those fees in estimated dollar terms for different portfolio sizes, and disclose any additional third‑party costs (such as custodian or fund expenses) so you can understand your all‑in cost of advice.
All investing involves risk, including the possible loss of principal, and market risk cannot be eliminated. Our fiduciary duty requires that we recommend strategies and allocations we reasonably believe are in your best interest given your objectives and risk tolerance, and that we monitor and adjust them as appropriate.
The frequency of formal reviews is set out in our advisory agreement and typically includes at least one comprehensive review per year. As a discretionary adviser, we implement day‑to‑day investment decisions on your behalf within the mandate you approve.
Unlike most broker‑dealer representatives, we are required to act as a fiduciary across the entire advisory relationship. We are compensated through transparent advisory fees rather than product commissions.
Our compliance program requires us to identify, disclose, and where possible mitigate or eliminate conflicts of interest. Any material economic relationships are described in Form ADV.
As an RIA, we provide investment advisory services. We do not provide legal, tax, or accounting advice and will recommend that you engage qualified attorneys or CPAs where required.
Fiduciary duty is the gold standard of modern wealth management because it replaces transactional suitability with unwavering stewardship. While a broker’s obligation ends at the point of sale, a fiduciary RIA’s commitment is a continuous oath to place the client’s interests above their own—transforming the advisor from a vendor into a true advocate
Fiduciary duty is not a marketing claim—it is a legal obligation that defines how RIAs must act on behalf of their clients. For sophisticated investors seeking transparency, alignment of interests, and institutional-grade strategies, choosing a SEC-registered fiduciary advisor is the foundation of a disciplined wealth management approach. Asset Manager Tech combines the fiduciary standard with algorithmic precision and digital-first efficiency, offering HNWIs a modern alternative to traditional advisory models.
Fiduciary duty is not a marketing claim—it is a legal obligation that defines how RIAs must act on behalf of their clients. For sophisticated investors seeking transparency, alignment of interests, and institutional-grade strategies, choosing a SEC-registered fiduciary advisor is the foundation of a disciplined wealth management approach. Asset Manager Tech combines the fiduciary standard with algorithmic precision and digital-first efficiency, offering HNWIs a modern alternative to traditional advisory models.investopedia+1[ppl-ai-file-upload.s3.amazonaws.
Risk Disclosure
Investing involves risk, including possible loss of principal. Past performance is not indicative of future results. Asset Manager Tech LLC is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. For complete information about our services, fees, and potential conflicts of interest, please review our Form ADV Part 2A and Form CRS
As an SEC‑registered investment adviser, we are legally obligated under the Investment Advisers Act of 1940 to act as a fiduciary to our advisory clients at all times. This fiduciary duty of loyalty and care is not optional marketing language; it is an enforceable legal standard that governs our recommendations, our monitoring of your portfolio, and our handling of conflicts of interest.
You can independently review our regulatory and disciplinary history on the SEC’s Investment Adviser Public Disclosure (IAPD) website by searching our firm name or CRD number. Form ADV, filed with the SEC and available through IAPD, discloses any reportable regulatory events, client complaints, or disciplinary actions, as well as our ownership structure and business affiliations.
Our advisory fee schedule is fully disclosed in Form ADV Part 2A and in your written advisory agreement before you engage our services. We clearly state our fees as a percentage, illustrate those fees in estimated dollar terms for different portfolio sizes, and disclose any additional third‑party costs (such as custodian or fund expenses) so you can understand your all‑in cost of advice.
All investing involves risk, including the possible loss of principal, and market risk cannot be eliminated. Our fiduciary duty requires that we recommend strategies and allocations we reasonably believe are in your best interest given your objectives and risk tolerance, and that we monitor and adjust them as appropriate.
The frequency of formal reviews is set out in our advisory agreement and typically includes at least one comprehensive review per year. As a discretionary adviser, we implement day‑to‑day investment decisions on your behalf within the mandate you approve.
Unlike most broker‑dealer representatives, we are required to act as a fiduciary across the entire advisory relationship. We are compensated through transparent advisory fees rather than product commissions.
Our compliance program requires us to identify, disclose, and where possible mitigate or eliminate conflicts of interest. Any material economic relationships are described in Form ADV.
As an RIA, we provide investment advisory services. We do not provide legal, tax, or accounting advice and will recommend that you engage qualified attorneys or CPAs where required.
SEC Registered Investment Advisor
We leverage advanced algorithms to manage your portfolio with discipline, providing clarity and confidence in your investment strategy.