How do I know if my financial advisor is a fiduciary?
You can confirm whether your financial advisor is a fiduciary in three steps. First, ask them in writing: "Are you a fiduciary at all times when advising me?" Save the reply. Real fiduciaries answer "yes" without hedging. If the email comes back with words like "when appropriate" or "in this account," the answer is no. Second, look up their firm on the SEC's public Investment Adviser Public Disclosure site at adviserinfo.sec.gov. Search by name or CRD number, then read Form ADV Part 1 Item 5.E and Part 2A Item 5. Third, check how they get paid. Fee-only fiduciaries are paid only by you. Anyone earning commissions, 12b-1 trails, or insurance overrides is fee-based, not fee-only. Each step takes about five minutes. Together they tell you if your advisor is bound to put your interests first.
Step 1 — Ask in writing
Email is best. Use this exact line: "Please confirm in writing whether you act as a fiduciary at all times when giving me advice, including on insurance, annuities, and rollovers." A fiduciary will answer "yes" plainly. A dual-registered rep will hedge — that hedge is the answer.
Step 2 — Look up the firm and the person
Go to adviserinfo.sec.gov, the SEC's free public database. Search by name, firm, or CRD number. Open the Form ADV Part 2A. In Item 5 (Fees and Compensation), look for the words "fee-only" or "compensated solely by fees paid by clients." Words like "in addition to," "may earn commissions," or "other compensation" mean fee-based, not fee-only. While you are there, check FINRA BrokerCheck at brokercheck.finra.org for any disciplinary events.
Step 3 — Check the compensation structure
Ask: "Do you or any related party earn commissions, 12b-1 fees, revenue-sharing, or insurance overrides on what I buy?" The fee-only answer is "no." Anything else means the advisor is paid in part by product companies, which creates conflicts even when the advice is well-meant.
Quick red flags
- "Fiduciary in this account only" — partial duty is not the standard.
- "Hybrid RIA / broker-dealer" — they switch hats based on the product.
- Refusal to put fiduciary status in writing.
- Form ADV Part 2A that lists insurance commissions or 12b-1 fees.
What to do next
If your current advisor passes all three checks, you are in good shape. If not, browse verified fee-only fiduciaries on Fiduciary Check — every listing has already cleared these checks against SEC and FINRA filings.