Is my financial advisor a fiduciary?
Not every "financial advisor" owes you a fiduciary duty. Here's the real difference, and how to check which kind you have in about a minute.
"Financial advisor" isn't a regulated title — anyone can use it. Whether the person you're working with actually has to act in your best interest depends on how they're registered, not on their business card.
The two standards
A registered investment adviser (RIA) is regulated under the Investment Advisers Act and owes clients a fiduciary duty at all times — a legal obligation to put your interests ahead of their own. A broker-dealer representative is generally held to a lower "best interest" standard (Regulation Best Interest, or Reg BI) that applies mainly at the point of a specific recommendation, not as an ongoing duty. Many people who call themselves "financial advisors" are actually operating under Reg BI, not full fiduciary duty.
How to check which one you have
Ask directly: "Are you a fiduciary at all times, in writing?" A true fiduciary will say yes without hesitation. Then verify independently — look up the firm's CRD number on the SEC's Investment Adviser Public Disclosure (IAPD) site or on a profile here. If the firm is a registered investment adviser, it is a fiduciary by law.
A note on dual registration
Some individuals are registered as both an investment adviser representative and a broker-dealer representative. In that case, the fiduciary duty applies only to the advisory side of the relationship, not to brokerage transactions. If this applies to your advisor, ask which hat they're wearing for each recommendation.
Frequently asked questions
Is my financial advisor a fiduciary?+
It depends on how they're registered, not their job title. If they're a registered investment adviser (RIA) with the SEC or a state regulator, they are legally a fiduciary. If they're only a broker-dealer representative, they're generally held to a lower "best interest" standard, not full fiduciary duty. You can check a firm's registration status on any profile here or on the SEC's IAPD site.
How can I check if my advisor is a fiduciary?+
Look up the firm by name or CRD number. SEC-registered investment advisers are fiduciaries by law. You can also simply ask the advisor directly whether they are a fiduciary at all times, in writing — a genuine fiduciary will confirm this without hedging.
What's the difference between a fiduciary and a suitability standard?+
A fiduciary must act in your best interest at all times. A suitability or "best interest" standard (Reg BI) generally only requires that a specific recommendation be suitable or in your best interest at the moment it's made, which is a narrower and lower bar than an ongoing fiduciary duty.
Put this into practice
Every firm profile on AdvisorGrade shows real, sourced fiduciary status, fees, and disclosure history from SEC filings — so you can check everything above in a couple of clicks.