In 1992, our founder, Peter Tanous, recognized a need for the type of conflict-free investment advice that was predominantly only available to large pension plans and endowments. He founded Lynx Investment Advisory with this goal in mind – to provide objective investment advice to a broad group of investors. Lynx is independent with no affiliation to broker/dealers so clients receive recommendations untainted/unbiased by outside influence and aligned with clients’ investment goals.
Investment advisors must adhere to either the “Fiduciary” rule or to a lesser standard known as the “Suitability” rule. The fiduciary rule requires that the advisor always place the client’s interests first. The suitability rule allows the advisor to consider their own self-interests so long as whatever they recommend to the client is deemed suitable to the client’s objectives and risk tolerance. Registered Investment Advisors are held to the higher Fiduciary standard while brokers and bank owned brokerage firms adhere to the Suitability standard. Hence, this latter group can recommend products and services where they receive a higher compensation so long as it is deemed suitable for their clients. The two different standards prevail and investors should be aware of the two standards and may want to consider the distinction between them when selecting an advisor.