Fiduciary describes a duty
The practical idea is that the professional should put the client’s interest first, use care, and disclose or manage conflicts. But the scope matters. A person may provide one service under an advisory relationship and another under a different arrangement.
Advisor describes a person or business
“Financial advisor” is used broadly in the marketplace. It does not, by itself, identify how someone is registered, what legal standard applies, whether they sell products, or how they are paid.
Ask “when,” not only “are you?”
- Will you act as a fiduciary at all times when advising me?
- Does that duty cover every account and recommendation in our relationship?
- When could you act in a sales or brokerage capacity instead?
- Will you confirm the answer in writing?
- What financial incentives could affect your recommendations?
Fee-only and fee-based are not the same
“Fee-only” generally signals compensation paid by clients rather than product commissions. “Fee-based” can include both client fees and commissions. Neither phrase substitutes for reviewing the actual disclosure documents and understanding all sources of compensation.
Documents to review
Request Form ADV, Form CRS, the advisory agreement, and a complete fee schedule. Look for outside business activities, disciplinary disclosures, affiliated products, referral arrangements, and conflicts related to rollovers or account type recommendations.
A fiduciary can still be expensive—or a poor fit
The duty is important, but it does not guarantee expertise, clear communication, fair fees, or a service matched to your needs. Evaluate standard, competence, scope, incentives, cost, and fit together.
Use the interview kit to create fiduciary and conflict questions, then model the proposed charge in the fee calculator.