What Is a Fiduciary?

Choosing a fiduciary financial advisor is one of the most important decisions you can make when planning for retirement. Unlike advisors held to a lower "suitability" standard, fiduciaries must disclose conflicts of interest, avoid self-dealing, and provide advice that is genuinely in your best interest. This distinction matters because it affects which products are recommended, how fees are structured, and whether the advice you receive is truly objective.

For Arizona retirees managing significant savings, the difference between fiduciary and non-fiduciary advice can amount to tens of thousands of dollars over a retirement.

Fiduciary duty applies differently depending on the type of advisor:

Registered Investment Advisors (RIAs) are held to a fiduciary standard under the Investment Advisers Act of 1940. They must always act in the client's best interest.

Certified Financial Planners (CFPs) are bound by fiduciary duty when providing financial planning services, as required by the CFP Board.

Broker-dealers are generally held to a "suitability" standard under FINRA regulations — meaning they must recommend suitable products, but those products don't have to be the *best* option for you. The SEC's Regulation Best Interest (Reg BI) raised this standard somewhat, but it's still not equivalent to full fiduciary duty.

To verify an advisor's fiduciary status, ask them directly: "Are you a fiduciary at all times, for all recommendations?" You can also check their registration on the SEC's Investment Adviser Public Disclosure (IAPD) website or FINRA BrokerCheck.

Arizona does not have state-level fiduciary regulations beyond federal requirements. However, Arizona residents can verify any advisor's background, complaints, and registration status through FINRA BrokerCheck (brokercheck.finra.org) and the Arizona Corporation Commission's Securities Division.