More about fiduciary
Stockbroker, Broker (Registered Representative), Investment Advisor, they are not fiduciaries!
Broker Dealers, Banks, mutual funds, insurance companies, their Registered Representatives and financial advisors are not required to meet fiduciary standards.
They can recommend investments that give him or her a bigger commission or larger payout, even if there is a product that might be less expensive for you in your situation. The SEC requires these type of advisors to make “suitable” recommendations and they are not required to make you aware of any conflict of interest.
Ask your advisor if they are acting as
RIA (Fiduciary)
As a fiduciary, an adviser must avoid conflicts of interest with clients and is prohibited from overreaching or taking unfair advantage of a client’s trust. A fiduciary owes its clients more than mere honesty and good faith alone. A fiduciary must be sensitive to the conscious and unconscious possibility of providing less than disinterested advice, and it may be faulted even when it does not intend to injure a client and even if the client does not suffer a monetary loss.
Broker (Suitability)
When your broker recommends that you buy or sell a particular security, your broker must have a reasonable basis for believing that the recommendation is suitable for you. In making this assessment, your broker must consider your income and net worth, investment objectives, risk tolerance, and other security holdings.
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