Toronto-based Richardson GMP Ltd. announced Wednesday that it has become the first Canadian investment advisory firm to be certified for fiduciary excellence.
After a rigorous assessment process to audit the firm’s practices, the Centre for Fiduciary Excellence (CEFEX) has determined that Richardson GMP’s Portfolio Management Account platform (for advisors who have complete control over decisions for their clients) and the firm’s Separately Managed Account platform conform to the global fiduciary standards of excellence.
Richardson GMP says this voluntary annual certification process provides its clients with an independent validation that the firm’s management systems are effectively implemented and capable of consistently achieving the stated objectives.
“We value and respect the very high degree of trust our clients have bestowed upon us and this certification demonstrates our commitment to their best interests,” says Andrew Marsh, President and CEO of Richardson GMP. “We encourage clients to be educated and engaged in the advisory relationship, but believe we have an obligation to hold ourselves to the highest standard of fiduciary care and be leaders in the wealth management industry.”
CEFEX is an independent global assessment and certification organization based in Toronto and Pittsburgh, Pennsylvania. To achieve CEFEX certification, an investment advisory firm must demonstrate adherence to fiduciary precepts, under the scrutiny of a panel of advisors and analysts, all of whom are Accredited Investment Fiduciary Analysts (AIFA). The certification process involves a detailed assessment of operational data and procedures.
Now that Richardson GMP has been certified, the firm will formalize a plan in 2013 for its investment advisors to independently earn the designation of Accredited Investment Fiduciary (AIF). AIF designees have a reputation in the industry for the ability to implement a prudent process into their individual investment practices.
Richardson GMP understands that wealth management is as important to many boards as it is to individual clients. “We expect our CEFEX certification will resonate with endowment funds, charities, scholarship programs and foundations that have significant capital to manage and bequest. Board members of these organizations are realizing that as stewards of that wealth, there is considerable liability on their shoulders and they can’t afford to take this responsibility lightly,” Marsh adds.