How to Verify Your Financial Advisor Is a Fiduciary

When choosing or reviewing a financial advisor, confirming they are a fiduciary — legally required to act in your best interest — can protect you from hidden conflicts and unsuitable recommendations. Start by asking the advisor directly: “Are you a fiduciary at all times when giving advice?” Ask them to define the scope of that fiduciary duty and to provide it in writing in the client agreement.

Next, check registrations and disclosures. Registered investment advisors (RIAs) generally operate under a fiduciary standard. Request the advisor’s Form ADV (Part 2A), which outlines services, fees, conflicts of interest and disciplinary history. You can also verify registration status and disciplinary records via the SEC’s Investment Adviser Public Disclosure site and use FINRA’s BrokerCheck if the advisor is also registered with a broker-dealer.

Evaluate how the advisor gets paid. Fee-only advisors are typically compensated directly by clients (hourly, flat, or percentage of assets) and do not accept commissions or third-party referral fees — reducing incentive-based conflicts. Fee-based or commission models can create misaligned incentives; if present, ask for full transparency on all compensation sources and examples of potential conflicts.

Look for professional credentials and clear policies. Certified Financial Planner (CFP) professionals are held to ethical standards that include acting in clients’ best interests. Ask for written policies on gifts, outside business activities and how they handle proprietary products or revenue sharing.

Ask practical, specific questions: “Can you show this fiduciary commitment in my contract?” “Do you accept commissions or third-party payments?” “How will you disclose conflicts?” “Will you put recommendations and costs in writing?” Request sample client agreements and hypothetical trade or product recommendations with fee breakdowns.

Finally, trust but verify. Read agreements carefully for language like “suitability” versus “fiduciary” and confirm disclosures on Form ADV. If answers are vague or the advisor resists written confirmation, consider seeking a different advisor. Taking these steps helps ensure your advisor is both qualified and obligated to prioritize your financial interests.