Fiduciary Education

Learn about fiduciary responsibility and why it matters

What is a Fiduciary?

A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients' interests ahead of their own, with a duty to preserve good faith and trust. Being a fiduciary thus requires being bound both legally and ethically to act in the other's best interests.

In the financial services industry, a fiduciary is obligated to place their clients' best interests above their own. This means they must recommend investments that are in the client's best interest, not those that generate the highest commissions or fees for themselves.

Why Does Fiduciary Status Matter?

Working with a fiduciary financial advisor provides several important benefits:

  • Conflicts of Interest: Fiduciaries must disclose and manage all conflicts of interest.
  • Transparency: Fiduciaries must be transparent about how they're compensated and what services they provide.
  • Client-Centered Advice: Recommendations are based on what's best for you, not what earns the advisor more money.
  • Legal Obligation: Fiduciaries have a legal obligation to act in your best interest, not just a voluntary commitment.

How to Verify Fiduciary Status

Not all financial advisors are fiduciaries. Here's how you can verify an advisor's fiduciary status:

  1. Ask directly if they are a fiduciary 100% of the time.
  2. Request to see their Form ADV (a document filed with the SEC).
  3. Check their credentials and registrations.
  4. Use our search tool to verify if your advisor is a fiduciary.
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