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.
- Financial advisors can be fiduciaries or non-fiduciaries. If they’re not held to a fiduciary standard, they may only be held to a suitability standard, meaning they’re required to offer suggestions that generally fit their clients’ financial situation, whether or not they have higher fees or bigger commissions than other options.