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Chapter 3: Fiduciary

Chapter 2: Regulations

What is a Fiduciary?

A fiduciary is a financial advisor who is required to act in the best interest of the party whose assets they are managing.

Who is Fiduciary?

There are three kinds of fiduciary. There are advisors that are:

  • Always fiduciary—CERTIFIED FINANCIAL PLANNERS™
  • Sometimes fiduciary—Investment advisor representative OR a fee-based advisor selling solely fee-based investments.
  • Never fiduciary—Insurance agents OR a registered representative of a commission-based advisor.

Bottom Line: By law, any advisor that receives a commission, except a CFP®, cannot be considered fiduciary.

Chapter 4: Verifying CERTIFIED FINANCIAL PLANNERS™