A fiduciary investment advisor is legally required to act in your best interest, putting your interests ahead of their own for as long as they advise you. When you hire one, you get advice judged by what is right for you, not by what is easiest to sell.
Not everyone who gives financial advice works under that standard, and the titles can sound alike. Here is what the word means, how it differs from other rules, and how to check before you hire anyone.
What a fiduciary investment advisor owes you
Registered investment advisers owe their clients a fiduciary duty under federal and state law. The SEC describes it as two parts:
- A duty of loyalty. Your interests come first. The advisor cannot put their own interests ahead of yours.
- A duty of care. Advice has to be based on a real understanding of your goals, timeline and comfort with risk, and it has to be reasonable for you.
That duty covers the whole relationship, not just the moment a recommendation is made. If your situation changes, the advice should change with it.
How the fiduciary standard differs from other rules
Brokers who sell investments follow a rule called Regulation Best Interest. It applies when they make a recommendation, such as suggesting a fund or an annuity. It is a meaningful rule, but it is tied to the transaction rather than to ongoing advice.
Insurance agents follow state insurance rules, which vary. Some professionals hold more than one license and switch between roles, so the standard can depend on which hat they are wearing that day. That is why it helps to ask directly. You can read more in our post on fee-only vs. commission advisors.
Why it matters when you hire someone
- Clear answers. You can ask why a recommendation fits you and expect a straight answer.
- Advice over time. Your portfolio gets attention after the first meeting, not only when something is bought or sold.
- Better questions. Knowing the standard helps you compare advisors on the same terms.
If you already work with someone and are not sure what standard applies, a second opinion review can lay out your fees, risk and overlap in plain terms.
How to check before you hire
- Ask: “Are you a fiduciary at all times, on every account?” and ask for it in writing.
- Ask how they are paid, from every source.
- Look them up at adviserinfo.sec.gov and read their Form ADV.
- Ask what you will pay each year, in dollars.
How we work with you
P.R. Curtman Investments is a fee-only fiduciary investment advisor for anyone with a portfolio, whether you are building it, protecting it or living on it. Fee-only, so we do better when you do better. As a fiduciary, Paul acts in your best interest and is paid if you choose to work with him.
You work directly with Paul, by appointment. We meet by phone, video, or in person somewhere convenient for you. See how it works on our process page or read more about Paul.
FAQ
Is every financial advisor a fiduciary?
No. Registered investment advisers are fiduciaries to their clients. Brokers and insurance agents follow different rules. Ask anyone you are considering which standard applies to them.
Does a fiduciary guarantee results?
No. A fiduciary duty is about how advice is given, not about investment results. All investing involves risk.
What is the difference between a fiduciary and fee-only?
Fiduciary describes the legal standard an advisor follows. Fee-only describes how they are paid: only by the client. P.R. Curtman Investments is both.
How can I tell if my current advisor is a fiduciary?
Ask them directly and ask for it in writing. You can also look up their registration and Form ADV at adviserinfo.sec.gov.
Your next step
- Ready to talk it through? Book a call with Paul.
- Have a quick question first? Ask it anytime in the chat on this page.
- Want the bigger picture? Get the free Retirement Income Blueprint.
This article is for education only and isn’t individual investment, tax or legal advice. Please talk with a qualified professional about your situation.
