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What are some duties of a fiduciary financial advisor?

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A fiduciary financial advisor has the duty to put his client's financial interests first, according to U.S. News & World Report. A fiduciary's duty to care means he must keep an eye not only on his clients' investments but also on his clients' financial situation.

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Full Answer

A financial advisor who is held to a fiduciary standard has much greater legal obligations to his client than one who is held to a suitability standard, under which the advisor must only determine that a given investment is suitable for the client, as U.S. News & World Report explains. A fiduciary financial advisor must also disclose to the client any conflicts of interest. Fiduciary advisors are not allowed to take any fees from the investments they suggest and may therefore cost more in the short run but save the client money in the long run.

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