How to Tell If a Financial Advisor Is a Fiduciary in 2025
- Mike Rogers
- May 1
- 6 min read
Updated: May 29
If you’re wondering how to tell if a financial advisor is a fiduciary these five steps will help.
But first, what is a fiduciary financial advisor? Fiduciary financial advisors are ethically and legally bound to act in your best interests, ensuring you receive objective advice and minimizing conflicts of interest. Fiduciaries typically operate on a fee-only or fee-based structure, avoiding commission-based payments that could influence product recommendations.
Mike Rogers is a fiduciary financial advisor with over 30 years of experience in the financial services industry as an investment advisor and financial planner. He founded 360 Financial in 1995 and holds series 7 and 63 security registrations with LPL Financial.
5 Ways to Tell If Your Financial Advisor Is a Fiduciary
Wondering how to tell if a financial advisor is a fiduciary? You're not alone. These five steps can get you started:
1 – Ask them directly
A genuine fiduciary will straightforwardly affirm their role and commitment to act in your best interests.
2 – Review the advisor’s credentials
Certifications such as CFP® (Certified Financial Planner) or AIF® (Accredited Investment Fiduciary) often indicate a fiduciary standard.
3 – Examine their fee structure
Fiduciaries typically operate on a fee-only or fee-based structure, avoiding commission-based payments that could influence product recommendations.
4 – Research their registration
Check if they are registered with the SEC (Securities and Exchange Commission) or state regulators, as Registered Investment Advisors (RIAs) are held to a fiduciary standard. (+)
5 – Request a written commitment
A fiduciary should be willing to provide a signed document that attests to their obligation to act in your best interests at all times.
📹 Watch the Video to Find Out Why Working with a Fiduciary Advisor Matters
What is a fiduciary financial advisor?
If you’re wondering what a fiduciary financial advisor is, this should help. These are the main indicators that an advisor is a fiduciary:
Legally required to act in your best interest
Must put your needs ahead of their own
Required to avoid or clearly disclose conflicts of interest
Must be transparent about all fees and how they’re compensated
Provides customized, client-focused financial advice
Cannot recommend products just to earn a commission
Holds a duty of loyalty and care to you
Typically works under a fee-only or fee-based model
Regulated by organizations like the SEC, FINRA, or CFP Board
Prioritizes long-term trust, transparency, and your financial goals
Common designations that often indicate fiduciary responsibility:
CFP® (Certified Financial Planner)
AIF® (Accredited Investment Fiduciary)
RIA (Registered Investment Advisor)
CPA®/PFS® (Certified Public Accountant/Personal Financial Specialist)
CFA® (Chartered Financial Analyst)
Keep in mind that not all of these designations automatically indicate that someone is a fiduciary, as the fiduciary duty depends on the role, legal requirements, and specific context in which the professional operates.
Below, I’ll clarify each designation and its relationship to fiduciary status.
What do the designations mean?
CFP:
CFP professionals are trained in comprehensive financial planning and must adhere to the CFP Board’s fiduciary standard when providing financial planning services. This means they act in the client’s best interest in those contexts, but the fiduciary duty may not apply if they’re performing non-planning tasks such as selling insurance without planning.
AIF:
AIF designees are specifically trained to adhere to fiduciary standards and are expected to act in their clients’ best interests when managing investments or providing advice. The AIF designation strongly aligns with fiduciary responsibility, though the legal obligation depends on the specific role and regulatory framework.
RIA:
RIAs are firms or individuals registered with the SEC or state regulators under the Investment Advisers Act of 1940. RIAs are legally required to act as fiduciaries, meaning they must put their clients’ interests first. However, individual advisors working under an RIA firm may or may not personally carry the fiduciary duty, depending on their role and client agreements.
PFS:
The PFS designation is an add-on for CPAs who specialize in financial planning. Like CFP professionals, PFS holders are typically held to a fiduciary standard when providing financial planning services.
CFA:
CFA charterholders focus on investment analysis and portfolio management. While they adhere to a strict code of ethics and standards of professional conduct set by the CFA Institute, they are not automatically fiduciaries unless their role or firm explicitly requires it (e.g., as an advisor under specific regulations). Fiduciary status depends on their job function and legal obligations.
Common Questions About Fiduciary Financial Advisors
How do I know if my financial advisor is a fiduciary?
To determine if a financial advisor is a fiduciary, you can directly ask them and also verify their status by checking their credentials and registration with regulatory bodies like the SEC.
Do all financial advisors have a fiduciary duty?
No, not all financial advisors have a fiduciary duty. Only those who are registered as such and commit to acting in the best interests of their clients carry this responsibility.
Why is it important to work with a fiduciary advisor?
It’s important to work with a fiduciary financial advisor because they are ethically and legally bound to act in your best interests, ensuring you receive objective advice and minimizing conflicts of interest. While there are great advisors out there who are not fiduciaries, you may wish to check if the advisory firm you’re working with has a fiduciary environment.
Some firms will have CFPs and AIFs who are fiduciary advisors. They may have other advisors who are not fiduciaries but are guided by the firms policy to always act in a client’s best interest. The main reason people choose to work with fiduciaries is because then they can be sure they’re not being sold packaged products such as mutual funds that have excessive fees.
What is the difference between a fiduciary and a non-fiduciary advisor?
The difference between a fiduciary and a non-fiduciary advisor is that a fiduciary advisor is legally obligated to act in the client’s best interests, while a non-fiduciary advisor might prioritize their own interests or those of the institution they represent over the client’s. They do not have a fiduciary duty to their client.
Are there any red flags to watch out for when assessing an advisor’s fiduciary status?
Yes, when assessing an advisor’s fiduciary status, red flags to watch out for include vague fee structures, reluctance to provide a written fiduciary commitment, or promoting products that offer them high commissions without clear benefits to the client.
What questions should I ask my financial advisor to confirm their fiduciary duty?
To confirm their fiduciary duty, you should ask your financial advisor if they are a fiduciary, inquire about their fee structure, and request a written statement affirming their commitment to act in your best interests.
Are there regulatory bodies or organizations that oversee fiduciary standards?
Yes, there are regulatory bodies that oversee fiduciary standards. In the U.S., the Securities and Exchange Commission (SEC) and state regulatory bodies supervise fiduciary standards, and professional organizations like the CFP Board set standards for certified professionals.
What legal obligations do fiduciary advisors have towards their clients?
Fiduciary advisors have the legal obligation to act in the best interests of their clients, disclose any potential conflicts of interest, and provide advice that aligns with the client’s goals and financial situation.
About the Author
Mike Rogers
Mike Rogers is the founder and president of Minnesota-based financial advisory firm 360 Financial. As the founder, Mike’s priority is that 360 Financial always serves the clients with empathy, integrity, and honesty. This customized, client-centric approach allows the firm to help clients decipher between the things they can control and what truly matters. In other words, Mike understands that money is not the end-all-be-all; instead, it’s the “how” that fuels the “why” to the question: “What’s important to you?”
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This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
