A Fiduciary Versus a Broker

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October 11, 2012


Do you ever wonder if your financial advisor is a fiduciary or a broker? Do you know the difference between the two professionals? These are two questions most people do not consider during their first financial planning consultation.


Below are the key responsibilities of a fiduciary:


  • Put the clients’ interests first at all times
  • Provide advice that they believe is in the best interests of the client
  • Provide full disclosure of all material facts such as compensation and disciplinary actions
  • Never mislead clients
  • Expose all conflicts of interest

The distinction between fiduciary and broker is very important. Brokers are not fiduciaries.  Therefore, they are subject to a lower standard when providing advice to their clients.   On the other hand, a Registered Investment Advisor is required to uphold a fiduciary standard to their clients, which provides a greater level of protection.


PARTNERSINWEALTH is a Registered Investment Advisor and is required to uphold the fiduciary standard when providing advice to our clients.


Forbes recently did a brief but interesting article on the differences. You can read it by clicking here.


If you would like to learn more about PARTNERSINWEALTH's commitment to the fiduciary standard, please contact James Waters at 713.964.4028 or jrw@partnersinwealth.com.