WHAT IS A FIDUCIARY?
A fiduciary is a professional entrusted to manage assets or wealth while putting the client's best interests first at all times. Financial advisors who follow a fiduciary standard must disclose any conflict, or potential conflict, to their clients prior to and through the advisory engagement. Fiduciaries will also adopt a code of ethics and will fully disclose how they are compensated.
WHO IS A FIDUCIARY?
Registered Investment Advisors (RIAs) are held to a fiduciary standard or care. By law, they must act solely in the best interest of their clients. To ensure your advisor or a potential advisor is following a fiduciary standard, requests to see the advisor's ADV (a form filed with the SEC) or ask if they will sign a Fiduciary Oath.
Things To Keep In Mind
Non- fiduciary financial professionals can recommend investments with higher fees, riskier features and lower returns because they earn more money for the advisor, even if those investments are not the best choice for their clients.