Fiduciary Oversight

Hermes Econometrics works with Registered Reps to assist them in better managing their fiduciary obligations with respect to retirement accounts by implementing a disciplined, fee-based investment process.

Effective June 9, 2017, the U.S. Department of Labor imposed a fiduciary standard that requires stewards of retirement savings accounts to act in their clients' best interest. Many elements of the 1000+ pages of regulation are currently in force; other provisions will become active in January 2018.

Financial advisors who provide financial management, advice, investment, and oversight of retirement accounts are now ERISA Fiduciaries. Hermes Econometrics provides a means of compliance with the advisors' fiduciary duty through its focus on risk-managed investing - adhering to the Impartial Conduct Standards and "Prudent Investor" requirements.


As a "level-fee" Registered Investment Advisor, Hermes Econometrics has always been a fiduciary in the management of client accounts under the Investment Advisers Act of 1940. Our management style also complies with California's Uniform Prudent Investor Act (1994), with its expectation that the investment advisor manage the risk of investing and exercise "continuing responsibility for oversight of the suitability of investments already made as well as decisions respecting new investments."

Active Management of Client Portfolios

Hermes Econometrics' approach to investing provides continuing oversight of investments and management of risk.

- Our mathematical, rules-based investment process adheres to the concept of Impartial Conduct Standards.

- We are a Level-Fee Fiduciary, streamlining the Best Interest Contract Exemption - compensation is provided on the basis of a fixed percentage of the value of the assets.

- Hermes' processes and procedures used to make investment decisions are demonstrated and documented.

- Our goal is always to act in the best interest of clients - maintaining a duty of loyalty and care, placing the interest of clients first.

- We seek best execution of clients' trades - striving to provide the best combination of low cost and efficient execution.

- We do not have "custody" of assets under Rule 206(4)-2 of the Investment Advisers Act of 1940.

 

Utilize Hermes Econometrics in the management of your clients' assets.