Who is watching over your Advisor?

Who is CEFEX?

The Centre For Fiduciary Excellence (“CEFEX”) is an independent global assessment and certification organization. It works closely with investment fiduciaries and industry experts to provide comprehensive assessment programs to improve risk management for institutional and retail investors. CEFEX registration serves investors who require assurance that their investments are being managed according to commonly accepted best practices.

Adherence to the Fiduciary Standard

CEFEX advisory firms voluntarily undertake annual audits by independent fiduciary experts to verify adherence to the fiduciary standard. These audits provide an additional level of security for investors by supplementing the oversight performed by financial regulators, such as the Securities and Exchange Commission (SEC). The annual assessment includes document review, client file sampling, on-site visits, a background check, and interviews with representatives of the firm.

Investor Benefits

A CEFEX-certified advisory firm places your interests first and will realize investment objectives sooner, better align investment services to expenses, and be accountable for actions taken. Annual audits help foster a culture of continuous improvement within the firm as advisors are required to keep up-to-date with regulations and best practices.

Adherence to the fiduciary standard can be the foundation for the trust placed in Advisors by their clients.

CEFEX Advisor Requirements

  1. Know standards, laws and trust provisions
  2. Diversify assets to specific risk/return profiles of each client
  3. Prepare investment policy statements
  4. Use ‘prudent experts’ (money managers / fund companies) and document due diligence
  5. Control and account for investment expenses
  6. Monitor the activities of the money managers
  7. Avoid conflicts of interest and prohibited transactions