The Future of Fiduciary is not Fiduciary

The need to define a new margin of excellence

For more than three decades, elite financial services professionals have used fiduciary best practices to define theirmargin of excellence; even when the professional was not subject to a fiduciary standard.Unfortunately, this same margin of excellence has become the first casualty of the ongoing fiduciary proliferation wars. In an effort to make everyone a fiduciary, regulators are gutting the essence of fiduciary and stuffing the cavity with complex rules and disclosures.

The future of fiduciary will not include a margin of excellence.

The new paradigm is to supplantfiduciarywithbehavioral governance. This is a new body of research that examines the interrelationships between leadership, stewardship, and governance (fiduciary responsibility).Behavioral governance is based on the groundbreaking academic and scientific research inneuro-leadership –except now thinkneuro-fiduciary. This research has identified key neurological factors and specific behaviors that are critical to the formation of trust and in determining the quality of a decision-making process.Behavioral governance can be used to frame a new margin of excellence in terms of the professional’s passion and discipline, and for their capacity to inspire and engage others.The future offiduciaryis notfiduciary– it’sbehavioral governance.Related: Fiduciary Well-Being™ and the Formation of Trust