A fiduciary financial advisor offers financial advice and services based on their client’s financial needs. However, unlike an advisor who is not a fiduciary, fiduciaires are are legally bound to offer financial advice and product recommendations that are in their clients’ best interest and are required to be transparent and disclose any potential conflicts of interest to their clients, such as profiting at their client’s expense.
Fiduciaries must provide comprehensive, and well-researched financial advice to their clients, and avoid using the client’s assets for personal use or advantage. They may face negative consequences if their fiduciary duty of acting in their client’s best interest is breached, for which their clients can file a civil claim to recoup the damages.
To learn more about fiduciary financial advisors and what they do, read this article.