Yes! Only fiduciary advisors (like The Portfolio Strategy Group) are legally required to consider what is best for you and act in your best interests across all accounts, at all times, even when it conflicts with their own interests.
Yet, most investors assume all advisors operate under the same obligations. They do not.
Non-fiduciary advisors operate under a far weaker standard of care known as suitability. They are not legally required to put your interests first or recommend the best option for you. This difference can directly shape the integrity and objectivity of advice you receive.
We are often surprised that people do not know or understand this distinction. With your long-term financial security at stake, why risk entrusting it to someone who is not required to prioritize your needs?
The fiduciary standard is among the most rigorous in financial services and demands ethical conduct, thoughtful analysis, and objective decision-making that considers your full financial picture. It is a legally binding and enforceable duty, not a voluntary best practice.
Clients of fiduciary firms benefit from advisors who:
By contrast, many advisors affiliated with large wirehouses or broker-dealer firms are held to the suitability standard. Under this standard, recommendations must merely be considered suitable, and only at the time of recommendation. Advisors are not required to choose the best available option and may be influenced by products that offer sales-driven compensation, exposing investors to potential conflicts and a misalignment of interests.
The bottom line: Suitability asks “is this acceptable for the client”, while fiduciaries ask “is this the right choice for this client”. In our view, it is not worth compromising your financial future by considering anything other than a fiduciary advisor.
To learn more about the fiduciary and suitability standards, please read our thought paper: The Fiduciary Difference: Understanding Financial Advisors, Compensation Models, and Why it Matters.
Important Disclosures:
All opinions expressed in this article are for informational and educational purposes and constitute the judgment of the author(s) as of the date of the writing. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual. PSG does not provide tax, legal or accounting advice, and nothing contained in these materials should be taken as such. To determine which investments may be appropriate for you, consult your wealth advisor prior to investing. As always please remember investing involves risk and possible loss of principal capital and past performance does not guarantee future returns.