A fiduciary financial advisor is a professional who is legally bound to act in your best interest. Working in your best interest differs from those financial advisors that sell products or get commissions for the products they recommend. These advisors may have conflicts of interest that may interfere with suggesting what is best for you.
A fiduciary relationship can help you feel confident that your finances are being managed in your best interest. If you’re looking for a fiduciary financial advisor in Minneapolis, MN, you should keep a few things in mind.
As a fiduciary, your financial advisor is legally bound to put your interests ahead of their own interests. This means they must disclose any potential conflicts of interest and recommend only those products or strategies that are in your best interest.
A fiduciary financial advisor in Minneapolis, MN is also required to fulfill three fundamental fiduciary obligations.
- They must be loyal to you, acting in good faith and avoiding or managing conflicts of interest.
- They must act with skill, diligence, and prudence. Fiduciary advisors are also required to document material information and evidence of sound decision-making processes.
- Fiduciary advisors must obey applicable laws and regulations.
To verify that your prospective fiduciary financial advisor in Minneapolis, MN is a fiduciary, you can ask them to sign a fiduciary oath. You can check advisory firms through the SEC’s advisor search tool. If the firm is registered with the SEC as a Registered Investment Advisor (RIA), they are a fiduciary. You will also be to able access the firm’s ADV, a form that outlines the firm’s services, compensation methods, and potential conflicts of interest.
