Fiduciary Duty: What It Means for Your Investments and Who Owes It to You

When you hire a financial advisor or use a brokerage that manages your money, you expect them to act in your best interest. That expectation isn’t just polite—it’s called fiduciary duty, a legal obligation to prioritize another person’s financial interests above their own. Also known as the fiduciary standard, it’s the backbone of trustworthy financial advice. Without it, your advisor could recommend products that pay them more, not ones that help you grow wealth. This isn’t hypothetical. Many brokers operate under a lower "suitability" standard, where they only need to suggest something that’s "acceptable"—not the best option for you.

Fiduciary duty applies to investment advisors, professionals registered with the SEC or state regulators who provide personalized financial advice, and some financial advisors, those who manage portfolios and plan for retirement, estate, or tax strategies. But it doesn’t apply to all. Bank reps, insurance agents, and some online platforms often don’t have to meet this standard unless they’re specifically registered as fiduciaries. That’s why you need to ask: "Are you a fiduciary?" and get it in writing. If they hesitate, that’s a red flag.

The difference between fiduciary and non-fiduciary advice shows up in fees, product choices, and long-term outcomes. A fiduciary won’t push high-commission mutual funds if a low-cost ETF does the same job. They won’t recommend insurance products just because they earn a bonus. They’ll explain trade-offs clearly, avoid conflicts, and document decisions. This isn’t about trust—it’s about accountability. And when your money is on the line, accountability matters more than charm.

You’ll find posts here that dig into how fiduciary duty connects to real-world investing. Some explain how broker-dealers hide behind loopholes. Others show how to verify if your advisor is truly acting in your interest. There are guides on reading Form ADV, spotting hidden fees, and understanding the difference between a financial planner and a salesperson. You’ll also see how this principle ties into AI-driven tools, robo-advisors, and even fintech apps that claim to be "for you." Not all live up to the promise.

Whether you’re just starting out or managing a portfolio worth hundreds of thousands, fiduciary duty is your shield. It’s not something you should assume—it’s something you should demand. Below, you’ll find real examples, practical checks, and hard truths about who’s really working for you—and who’s working for their commission.