"Financial advisor" isn't a protected title, so it's worth knowing what standard an advisor is held to when they give you advice.
What a fiduciary is
A fiduciary has a legal duty to put your interests ahead of their own. Registered investment advisers owe this duty to their advisory clients under federal and state law. That includes recommending what's best for you and disclosing conflicts of interest.
The broker standard
Brokers who sell investments are held to Regulation Best Interest, an SEC rule that took effect in 2020. It requires recommendations to be in your best interest at the time they're made, but it isn't the same ongoing fiduciary relationship an investment adviser has.
Advisors who are both
Some professionals are dually registered: they act as a fiduciary when managing your advisory account and as a broker when selling certain products. Ask which role they're in for each recommendation.
How to check any advisor
- Search their name on the SEC's Investment Adviser Public Disclosure site (adviserinfo.sec.gov).
- Check FINRA BrokerCheck (brokercheck.finra.org) for any brokerage registration and disciplinary history.
- Read their Form ADV Part 2. It explains services, fees, and conflicts in plain language.
- Ask directly: "Are you a fiduciary all the time, for all of my accounts?"