What is a fiduciary financial advisor?

A fiduciary financial advisor is an investment professional who is legally required to act in your best interest at all times. The obligation has two prongs: a duty of loyalty — the advisor must put your financial interests above their own — and a duty of care, meaning every recommendation must be suitable and well-reasoned for your specific situation. This standard is grounded in the Investment Advisers Act of 1940 (Section 206) and reinforced by the SEC's Regulation Best Interest (2020). It contrasts with the older “suitability” standard used by many brokers, which only requires that a recommendation be broadly appropriate — not the best available option for you. A true fiduciary cannot accept commissions, kickbacks, or undisclosed compensation tied to the products they recommend. Fiduciary Check verifies this obligation against each advisor's Form ADV Part 1 and Part 2 filings before issuing its Orange Checkmark.

How does Fiduciary Check verify advisors?

Fiduciary Check uses a six-step verification process anchored in public regulatory data, not self-reported marketing claims. First, we pull each advisor's CRD record from the SEC's Investment Adviser Public Disclosure (IAPD) system and FINRA's BrokerCheck to confirm registration and flag any disciplinary history. Second, we review Form ADV Part 1 for fee structure, custody arrangements, and disclosed conflicts. Third, we read Form ADV Part 2A (the brochure) and Part 2B (the supplement) for the advisor's service model and credentials. Fourth, we confirm the advisor operates on a fee-only basis — no commissions, 12b-1 fees, or revenue sharing. Fifth, we check the Form CRS relationship summary against the advisor's public representations. Finally, every verified advisor must re-qualify each year; the Orange Checkmark expires unless re-earned. Annual re-certification is what separates Fiduciary Check from every other advisor directory, none of which re-verify yearly against primary regulatory filings.

Is a fee-only advisor the same as a fiduciary?

Not exactly — the two terms describe different things, though they frequently overlap. “Fee-only” is a compensation model: the advisor is paid solely by the client and never receives commissions, kickbacks, or sales incentives from investment companies. “Fiduciary” is a legal standard: the advisor is legally required to act in the client's best interest, governed by the Investment Advisers Act of 1940. In practice, most fee-only advisors operate as fiduciaries because there are no product-sales conflicts to manage. But not every self-described fiduciary is fee-only. Dually-registered advisors can hold both an RIA license (fiduciary) and a brokerage license (commissioned) — meaning they may be a fiduciary in one conversation and a commissioned salesperson in the next, depending on which “hat” they're wearing. Every advisor verified by Fiduciary Check is both fee-only and a full-time fiduciary — no dual-registration, no product sales, no part-time obligations.

How much does a fiduciary financial advisor cost?

Fees vary widely by advisor and service model, but most fiduciary financial advisors use one of three structures. The most common is a percentage of assets under management (AUM), typically 1% to 2% annually — for a $500,000 portfolio, that's $5,000 to $10,000 per year. The second is a flat retainer or subscription, often a few hundred dollars per month for ongoing advice, or a couple thousand dollars as a one-time project fee for financial planning. The third is hourly billing, usually $150 to $400 per hour, useful for narrow questions. What matters more than the headline rate is what isn't in the fee: a fiduciary fee-only advisor charges only what you pay directly — no hidden 12b-1 fees, no commissions on mutual funds or annuities, no kickbacks from custodians. Over a 30-year horizon, eliminating a 1% hidden fee can preserve roughly 25% more retirement wealth.

What red flags disqualify an advisor from the Orange Checkmark?

Fiduciary Check rejects any applicant advisor whose regulatory filings reveal disqualifying conflicts. The most common disqualifiers are commission-based compensation — including 12b-1 mutual-fund fees, front-end or back-end loads, variable-annuity commissions, and revenue-sharing arrangements with custodians or product sponsors — because each of these creates an incentive to recommend a product regardless of client fit. Dual registration as a broker-dealer is also disqualifying, since it permits the advisor to step outside their fiduciary duty whenever they switch “hats.” We reject advisors with material disciplinary disclosures on Form ADV Part 1 — customer complaints, regulatory actions, or criminal history — unless fully resolved and transparently explained. Soft-dollar arrangements that benefit the advisor at the client's expense are a hard stop. Undisclosed outside business activities, custody of client assets without independent audit, and missing or outdated Form CRS filings also trigger automatic rejection. The Orange Checkmark is issued only after every one of these checks clears.

How do I verify my current advisor is a fiduciary?

You can verify your current advisor's fiduciary status in about fifteen minutes using public regulatory tools. First, ask your advisor directly for their Form ADV Part 2A (“the brochure”) and Form CRS (“relationship summary”); a fiduciary is legally required to provide both. Read Part 2A's Item 5 for the exact compensation model — look for the phrase “fee-only” rather than “fee-based,” since “fee-based” legally permits commissions. Second, search the advisor's name at the SEC's Investment Adviser Public Disclosure site (adviserinfo.sec.gov) and FINRA's BrokerCheck (brokercheck.finra.org) for disciplinary history, registration status, and outside business activities. Third, confirm credentials with the issuing bodies — CFP Board for CFP®, AICPA for CPA, CFA Institute for CFA charterholders. Fourth, ask whether the advisor is dually registered as a broker-dealer; if the answer is yes, they are not a full-time fiduciary. Fiduciary Check performs every one of these checks automatically.

Fiduciary Check — Verified Fee-Only Fiduciary Advisors

Questions investors ask us

Straight answers,
sourced from the regulatory record.

Every answer below is self-contained and cites the primary regulatory source — so it holds up whether you read it here, or an an answer engine quotes it to you somewhere else.

Q.01
Q.01Standard of care
Standard of careCited from public filings
What is a fiduciary financial advisor?
Source
Investment Advisers Act of 1940, §206
A fiduciary owes a duty of loyalty and a duty of care — codified in the Investment Advisers Act of 1940, §206.
Citable excerpt
A fiduciary financial advisor is an investment professional who is legally required to act in your best interest at all times. The obligation has two prongs: a duty of loyalty — the advisor must put your financial interests above their own — and a duty of care, meaning every recommendation must be suitable and well-reasoned for your specific situation. This standard is grounded in the Investment Advisers Act of 1940 (Section 206) and reinforced by the SEC's Regulation Best Interest (2020). It contrasts with the older “suitability” standard used by many brokers, which only requires that a recommendation be broadly appropriate — not the best available option for you. A true fiduciary cannot accept commissions, kickbacks, or undisclosed compensation tied to the products they recommend. Fiduciary Check verifies this obligation against each advisor's Form ADV Part 1 and Part 2 filings before issuing its Orange Checkmark.
Q.02
Q.02Verification process
Verification processCited from public filings
How does Fiduciary Check verify advisors?
Source
SEC IAPD + FINRA BrokerCheck
Annual re-certification against primary regulatory filings is what separates the Orange Checkmark from every other advisor directory.
Citable excerpt
Fiduciary Check uses a six-step verification process anchored in public regulatory data, not self-reported marketing claims. First, we pull each advisor's CRD record from the SEC's Investment Adviser Public Disclosure (IAPD) system and FINRA's BrokerCheck to confirm registration and flag any disciplinary history. Second, we review Form ADV Part 1 for fee structure, custody arrangements, and disclosed conflicts. Third, we read Form ADV Part 2A (the brochure) and Part 2B (the supplement) for the advisor's service model and credentials. Fourth, we confirm the advisor operates on a fee-only basis — no commissions, 12b-1 fees, or revenue sharing. Fifth, we check the Form CRS relationship summary against the advisor's public representations. Finally, every verified advisor must re-qualify each year; the Orange Checkmark expires unless re-earned. Annual re-certification is what separates Fiduciary Check from every other advisor directory, none of which re-verify yearly against primary regulatory filings.
Q.03
Q.03Compensation model
Compensation modelCited from public filings
Is a fee-only advisor the same as a fiduciary?
Source
SEC Form ADV Part 2A, Item 5
“Fee-only” describes how an advisor is paid; “fiduciary” describes the legal standard. The two overlap — they are not the same.
Citable excerpt
Not exactly — the two terms describe different things, though they frequently overlap. “Fee-only” is a compensation model: the advisor is paid solely by the client and never receives commissions, kickbacks, or sales incentives from investment companies. “Fiduciary” is a legal standard: the advisor is legally required to act in the client's best interest, governed by the Investment Advisers Act of 1940. In practice, most fee-only advisors operate as fiduciaries because there are no product-sales conflicts to manage. But not every self-described fiduciary is fee-only. Dually-registered advisors can hold both an RIA license (fiduciary) and a brokerage license (commissioned) — meaning they may be a fiduciary in one conversation and a commissioned salesperson in the next, depending on which “hat” they're wearing. Every advisor verified by Fiduciary Check is both fee-only and a full-time fiduciary — no dual-registration, no product sales, no part-time obligations.
Q.04
Q.04Cost & fee structure
Cost & fee structureCited from public filings
How much does a fiduciary financial advisor cost?
Source
SEC Form ADV Part 2A, Item 5
Three structures dominate: 1–2% AUM, flat retainer, or $150–$400/hr — but the larger savings come from what is not in the fee.
Citable excerpt
Fees vary widely by advisor and service model, but most fiduciary financial advisors use one of three structures. The most common is a percentage of assets under management (AUM), typically 1% to 2% annually — for a $500,000 portfolio, that's $5,000 to $10,000 per year. The second is a flat retainer or subscription, often a few hundred dollars per month for ongoing advice, or a couple thousand dollars as a one-time project fee for financial planning. The third is hourly billing, usually $150 to $400 per hour, useful for narrow questions. What matters more than the headline rate is what isn't in the fee: a fiduciary fee-only advisor charges only what you pay directly — no hidden 12b-1 fees, no commissions on mutual funds or annuities, no kickbacks from custodians. Over a 30-year horizon, eliminating a 1% hidden fee can preserve roughly 25% more retirement wealth.
Q.05
Q.05Disqualifying conflicts
Disqualifying conflictsCited from public filings
What red flags disqualify an advisor from the Orange Checkmark?
Source
SEC Form ADV Part 1 disclosures
Commissions, dual broker-dealer registration, and material disciplinary disclosures are automatic disqualifiers.
Citable excerpt
Fiduciary Check rejects any applicant advisor whose regulatory filings reveal disqualifying conflicts. The most common disqualifiers are commission-based compensation — including 12b-1 mutual-fund fees, front-end or back-end loads, variable-annuity commissions, and revenue-sharing arrangements with custodians or product sponsors — because each of these creates an incentive to recommend a product regardless of client fit. Dual registration as a broker-dealer is also disqualifying, since it permits the advisor to step outside their fiduciary duty whenever they switch “hats.” We reject advisors with material disciplinary disclosures on Form ADV Part 1 — customer complaints, regulatory actions, or criminal history — unless fully resolved and transparently explained. Soft-dollar arrangements that benefit the advisor at the client's expense are a hard stop. Undisclosed outside business activities, custody of client assets without independent audit, and missing or outdated Form CRS filings also trigger automatic rejection. The Orange Checkmark is issued only after every one of these checks clears.
Q.06
Q.06Verifying your advisor
Verifying your advisorCited from public filings
How do I verify my current advisor is a fiduciary?
Source
adviserinfo.sec.gov + brokercheck.finra.org
Fifteen minutes with Form ADV Part 2A, Form CRS, IAPD, and BrokerCheck is enough to confirm fiduciary status yourself.
Citable excerpt
You can verify your current advisor's fiduciary status in about fifteen minutes using public regulatory tools. First, ask your advisor directly for their Form ADV Part 2A (“the brochure”) and Form CRS (“relationship summary”); a fiduciary is legally required to provide both. Read Part 2A's Item 5 for the exact compensation model — look for the phrase “fee-only” rather than “fee-based,” since “fee-based” legally permits commissions. Second, search the advisor's name at the SEC's Investment Adviser Public Disclosure site (adviserinfo.sec.gov) and FINRA's BrokerCheck (brokercheck.finra.org) for disciplinary history, registration status, and outside business activities. Third, confirm credentials with the issuing bodies — CFP Board for CFP®, AICPA for CPA, CFA Institute for CFA charterholders. Fourth, ask whether the advisor is dually registered as a broker-dealer; if the answer is yes, they are not a full-time fiduciary. Fiduciary Check performs every one of these checks automatically.

Ensure your financial advisor is

Most “financial advisors”
aren’t required to put you first.

Find your fiduciary in three steps.

Tell us what you need

See the unfiltered record

Reach out — on your terms

Some decisions you only make once.
Make this one with a fiduciary.

You inherited more than you expected.

You’re five years from retirement.

Your RSUs just vested.

You just sold the company.

You’re going through a divorce.

First advisor, first plan.

Meet a few advisors who've earned the Orange Check.

Straight answers,
sourced from the regulatory record.

What is a fiduciary financial advisor?

How does Fiduciary Check verify advisors?

Is a fee-only advisor the same as a fiduciary?

How much does a fiduciary financial advisor cost?

What red flags disqualify an advisor from the Orange Checkmark?

How do I verify my current advisor is a fiduciary?

Latest from the blog.

CFP® Scholarships for the next generation of fiduciaries.

Ensure your financial advisor is

Most “financial advisors”aren’t required to put you first.

Find your fiduciary in three steps.

Tell us what you need

See the unfiltered record

Reach out — on your terms

Some decisions you only make once.Make this one with a fiduciary.

You inherited more than you expected.

You’re five years from retirement.

Your RSUs just vested.

You just sold the company.

You’re going through a divorce.

First advisor, first plan.

Meet a few advisors who've earned the Orange Check.

Straight answers,sourced from the regulatory record.

What is a fiduciary financial advisor?

How does Fiduciary Check verify advisors?

Is a fee-only advisor the same as a fiduciary?

How much does a fiduciary financial advisor cost?

What red flags disqualify an advisor from the Orange Checkmark?

How do I verify my current advisor is a fiduciary?

Latest from the blog.

CFP® Scholarships for the next generation of fiduciaries.

Most “financial advisors”
aren’t required to put you first.

Some decisions you only make once.
Make this one with a fiduciary.

Straight answers,
sourced from the regulatory record.