How to choose Fiduciary Financial Advisor
Not All 'Fiduciaries' Are Equal
"Financial companies often pay advisers more to promote certain products rather than to recommend what is best for their customers. That incentive creates what is known as a conflict of interest. And conflicts of interest sometimes can cause advisers to give bad advice."
Let common sense be your guide
Choose what makes sense. Skip what doesn’t.
Fee-Only
If you want advice that’s never influenced by marketing incentives, choose advisors who don't hold licenses to receive marketing incentives.
Expertise
If you want financial expertise, choose actual financial experts.
Independent
If you want investment guidance free from corporate product incentives, choose an independent firm with no proprietary products to promote.
The Risk of the "Conditional" Fiduciary
For many high-net-worth families, the term "fiduciary" deserves a closer look. Some advisors are dual-registered, meaning the standard of care they owe you can change depending on the type of service being provided. When delivering a financial plan, they operate under a fiduciary standard. When recommending a specific investment or insurance product, they may operate under a different regulatory standard that does not require them to act in your best interest.
Understanding this distinction matters. At FirsTrust, we believe that your advisor should be a fiduciary 100% of the time, and only compensated by you, not by the products they recommend.
Fee-only advisors commit to:
- No commissions from product sales
- No compensation from insurance or investment providers
- Compensation only from client fees
NAPFA takes this further by requiring their fee-only members to:
- Act as a fiduciary 100% of the time
- Provide a written Fiduciary Oath
For those navigating complex wealth, objective advice is a foundational risk-management tool. We choose the NAPFA standard because it reinforces that our advocacy remains structural, not situational.
Advisor Checklist ✓
"Trust but verify" - President Ronald Reagan
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Fee-Based ≠ Fee-Only
The terms sound similar, but the difference is significant. “Fee-based” advisors can receive commissions and third-party incentives. A Fee-Only NAPFA-Registered Financial Advisor cannot.
True Fiduciary
A fiduciary who also holds a broker license can receive commissions and promotional incentives. Before you hire, verify that your advisor is not listed as both on BrokerCheck.
Plain-English Fees
Look for a transparent, clearly stated fee schedule with no hidden charges or additional costs. Your total advisory fee should be easy to calculate and verify.
Get It In Writing
Don't simply take their word for it, check your advisor's Form CRS and search for the phrase "Conflicts of Interest". Read our Form CRS.
Independence
Check their business cards for “Securities offered through”. It may indicate an allegiance to a broker-dealer, an obligation to recommend investments the brokerage promotes, and/or a license to sell products.
Regulatory Record
Check advisors and their firms for disciplinary history, customer disputes, or bankruptcies. Search their firm and navigate to the Disclosure(s) section on SEC IAPD.
Proven Credentials
Independent Custody
Your assets should be held at an independent, third-party custodian with statements coming directly from the custodian. Verify custody arrangements in the advisor’s Form ADV Part 2.
Frequently asked questions
No. "Fee-based" means the advisor charges fees and may also receive commissions. FirsTrust advisors are Fee-Only, the only license we hold is to charge a fully transparent fee.
Go to BrokerCheck and enter the adviser’s name and city/state. If they’re listed as a Broker, or as both a Broker and an Investment Adviser, they’re licensed to receive commissions.
Some firms receive revenue-sharing payments or placement fees for promoting certain investments, costs that are passed through to clients. An independent, fee-only advisor has no such arrangements and no compensation tied to the products recommended.
FirsTrust is registered with the SEC as a Registered Investment Adviser (RIA) under the Investment Advisers Act of 1940, which legally requires us to act as a fiduciary. Verify at SEC IAPD (CRD #110891). We are fee-only, we accept no commissions from product providers, eliminating conflicts of interest.
Schwab, Fidelity, and Vanguard serve as custodians or direct-to-consumer platforms, meaning your assets are held with them. FirsTrust provides the layer above: fiduciary financial planning, tax strategy, and an ongoing advisory relationship coordinated across your full financial picture.
Ready to see if we're the right fit?
If your wealth has grown beyond what simple advice can manage, we should talk.