The Fiduciary Frontier: Navigating the Complex World of Personal Finance with Don Trone

Don Trone is the CEO and one of the Co-founders of 3ethos. In 2015 he was named by Investment Advisor magazine as the “Father of Fiduciary” and one of the 35 most influential people in the financial services industry. He is also the author or co-author of ten books on the subject of fiduciary responsibility, portfolio management, and leadership.[00:01 - 07:40] Fiduciary Responsibility and Coast Guard Veteran5 million people have a legal responsibility for managing someone else's moneyFiduciaries have a duty to inspire and engage others, protect assets, and demonstrate a pleading process The lack of procedure process checklists in the financial services business [07:40 - 17:55] Fiduciary Regulations: Complexity, Disclosure, and Private Equity Impacting InvestorsRegulators are doing more harm than good by making disclosure too complex for the average investor to understand.There are 8 other factors that can negatively impact investment performance besides fees and compensation, which are not covered in current regulationsThere is a lack of understanding of the concept of fiduciary from front to back in Washington DC.[17:56 - 23:02] Uncovering Best Practices in Financial Services: Exploring Behavioral Governance and Behavioral FinanceThe SEC could take 1% of their enforcement budget to market for trainingLooking for an authentic leader and steward with a command presenceComplexity is an inhibitor to trust, so avoid industry jargon and legalese when talking to clientsBehavioral governance is a new framework that uses plain English and is universalBehavioral finance evolved from behavioral governance research[23:03 - 35:15] Investigating the Leadership Behaviors Behind the SuccessThe Coast Guard was the only government agency to respond effectively to Hurricane KatrinaCongress held hearings to investigate why the Coast Guard got it right and everyone else failedDon Trone started 3ethos, which integrates leadership, stewardship, and governanceThe three areas to focus on: creating a master's degree with a concentration in fiduciary studies, developing protocols or training programs for lay fiduciaries, and board certifying fiduciaries by specialty[35:16 - 38:25] Closing SegmentQuotes:“When we can improve pension plan outcomes, when we can improve the management of foundation and endowment assets, we're actually in a position to improve the lives of others.” - Don Trone“If you're interviewing somebody as a potential advisor or consultant, view them as a leader and steward in your life.” - Don TroneConnect with me:https://www.linkedin.com/in/brian-c-adams/ (LinkedIn)LIKE, SUBSCRIBE, AND LEAVE US A REVIEW on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on. Thank you for tuning in and Stay Tuned for the Next Episode COMING SOON! Hosted on Acast. See acast.com/privacy for more information.