Neuro-fiduciary is the science that seeks a better understanding of what it takes to be a great fiduciary. It’s the next significant step in the evolution of the fiduciary movement.
For the past 35 years, the fiduciary movement has been defining best practices that are fully substantiated by law, regulations, case law, and regulatory opinion letters. Now, we’re employing neuroscience to discover ways to improve these same best practices, and to improve the prudent and ethical judgment of a fiduciary.
It’s not enough to be compliant with complex disclosures and rules.
Consider a Coast Guard aviator; the pinnacle of their career is when they’re designated as an aircraft commander. They’re not only the lead pilot, but also the on-scene commander who has sole responsibility for the prosecution of a mission. Often, lives hang in the balance.
To be selected as an aircraft commander, it’s not enough to demonstrate a mastery of flight maneuvers, emergency procedures, federal aviation regulations, and standing operating orders. There are great Coast Guard pilots who are never designated because they’re lacking in one critical area—judgment.
Forthcoming fiduciary standards are based on the presupposition that you lack good judgment. Specifically, you don’t have the capacity for moral and ethical discernment, and that you’re not capable of applying a prudent decision-making process to the facts and circumstances of a client’s specific situation.
Well …with some brokers and financial advisors that may be true.
So, it raises the billion-dollar question: Is it possible to improve the judgment of a fiduciary?
The answer, is a qualified, yes. We can have a positive impact on those who are willing to learn and to make a change.
We begin with the groundbreaking academic and scientific research that has been conducted in Neuro-leadership. This new field of study demonstrates that an exemplary leader has greater neurological capacity for:
Note how these same neurological markers can be used to describe an exemplary fiduciary—hence our use of the term, neuro-fiduciary.
In turn, for each of these six neurological markers, we have identified the corresponding leadership and stewardship behaviors. For example, you may display your capacity for ‘Moral and ethical decision-making’ by demonstrating that they’re character-full, authentic, compassionate, accountable, and courageous.
With the inventory of leadership and stewardship behaviors, we can now assess you against the profile of an exemplary fiduciary; identify your potential shortfalls and blindspots; and then, provide you a custom training program.
In short, we don’t need to lower fiduciary standards; we need to raise the quality of fiduciary training. We should invest in academic and scientific research that provides us a better understanding of how we can improve the judgment of a fiduciary.
Don Trone is one of five Co-founders of 3ethos. The other Co-founders include Dr. Sean Hannah, Mary Lou Wattman, Rear Admiral Steve Branham, USCG (Retired), and Dr. John Sumanth. 3ethos is conducting original research in the field of Behavioral Governance—the study of the interrelationships between leadership, stewardship, and governance.
Don Trone is regarded as the ‘Father of Fiduciary’. He is the CEO and co-founder of 3ethos and the CEO and one of the co-founders of the Center for Board Certified Fiduciaries which is affiliated with the Wake Forest University School of Professional Studies. CBCF is the only organization offering graduate-level training in the leadership and stewardship roles of fiduciaries.
