All investment advisors registered with the U.S. Securities and Exchange Commission (SEC) or a state securities regulator must act as fiduciaries. On the other hand, broker-dealers, stockbrokers and insurance agents are only required to fulfill a suitability obligation.
People also ask, how do I know if my advisor is a fiduciary?
Usually, the simplest way to find out if your financial advisor is a fiduciary is to ask them. They should be able to give an unequivocal “yes” and put it in writing. Anything less should be considered a red flag.
In this way, what percentage of financial advisors are fiduciaries?
However, many Americans still don’t know how to tell if an advisor is a fiduciary. Only 50 percent of investors who work with a financial advisor are certain that their advisor is a fiduciary, while 38 percent don’t know if their advisor is a fiduciary or not. “The bar is rising.