The advisor shall exercise his/her best efforts to act in good faith and in the best interests of the client. The advisor shall provide written disclosure to the client prior to the engagement of the advisor, and thereafter throughout the term of the engagement, of any conflicts of interest which will or reasonably may compromise the impartiality or independence of the advisor.

The advisor, or any party in which the advisor has a financial interest, does not receive any compensation or other remuneration that is contingent on any client's purchase or sale of a financial product. The advisor does not receive a referral fee or other compensation from another party based on the referral of a client or the client's business.

As members of the National Association of Personal Financial Advisors (NAPFA), the largest organization of "Fee-OnlyŽ" advisors, we have met the highest standards in the industry for competency, fairness, and quality of advice.

What does "Fee-OnlyŽ" mean?
This term refers to the method of compensation for the financial advisor. The National Association of Personal Financial Advisors (NAPFA) defines a "Fee-OnlyŽ" financial advisor as one who is "compensated solely by the client with neither the advisor nor any related party receiving compensation that is contingent on the purchase or sale of a financial product." NAPFA registered the term "Fee-Only" in order to limit its use to people who have met its strict definition of the term. BWFA meets that definition and is authorized to use the term.

"Fee-OnlyŽ" advisors believe there is a significant "conflict of interest" if an advisor stands to gain financially from the purchase of any product he or she recommends to the client.

At BWFA, we can be objective in the advice we offer since we do not receive any compensation for recommending specific investments or insurance. Our success depends entirely on the quality of our advice and the satisfaction of our clients.

What other forms of compensation are used by financial advisors?
Some advisors are compensated entirely by commissions from selling products, such as mutual funds and insurance. Other advisors, referred to as "Fee-based" or "Fee-offset," charge both a fee and receive commissions. NAPFA members use neither method.

What other qualifications does NAPFA require for membership?
To earn membership in the organization, NAPFA members must demonstrate their ability to provide sophisticated, comprehensive financial planning. Other requirements include:

• Compliance with federal and state investment advisor regulations
• Advanced education in the field or other related credentials
• Significant professional experience
• Peer review of a comprehensive plan
• Extensive continuing education

Do NAPFA advisors have any fiduciary responsibility?
Unlike brokers, who are considered Agents under the law, Registered Investment Advisors have a fiduciary duty to their clients. This means they must act from a position of confidence and trust and always place the client's best interests in front of their own. In addition, NAPFA members have taken the NAPFA Fiduciary Oath (see oath at left) .

NEWSWEEK - Jane Bryant Quinn
"Financial Planners who take commissions have a built-in conflict of interest...even with disclosure, my choice would be a Fee-Only planner."

MONEY MAGAZINE
"Start with the general practitioner...a Financial Planner(whose) compensation should be from fees alone."

FORBES
"The most important matter is how the planner is compensated. Hire the planner who...has no financial stake in (your) investments."