Guides · Fiduciary vs. non-fiduciary advisors

Fiduciary vs. non-fiduciary advisors

What the difference means for the advice you get, and how to find out which you are working with.

What a fiduciary is

A fiduciary is legally required to act in your best interest and to disclose conflicts of interest. Registered investment advisers generally have this duty for the advice they give.

What non-fiduciary advice can look like

Some brokers and salespeople are held to a suitability or best-interest standard, which is different from a full fiduciary duty. They may recommend products that pay them a commission, as long as the product is suitable for you.

How to find out

Ask directly, and get the answer in writing. Check the advisor's Form ADV, which describes their services, fees, and conflicts. You can find it on the SEC's adviser search site.

Why it matters

The standard an advisor follows affects which products they recommend and how they are paid. Knowing it helps you judge their advice.