F.A.Q. #9 - Is a 'Fiduciary Securities Advisor' in YOUR Best Interests?

Updated: Sep 3

The term 'fiduciary' has become FAR more marketing 'hype' than it really deserves to be, and that 'hype' is serving only ONE kind of 'advisor' - an advisor that, ironically, might NOT be in YOUR best interests!

Please allow me to explain: In the financial services world, nearly anyone can call themselves a financial advisor, regardless of licensing. The term 'financial advisor' is not a regulated term.

The following titles are regulated terms with corresponding licensing:

  • Insurance Agent: One who holds various insurance licenses with one or more states to sell various insurance products such as life insurance, disability insurance, long term care, and various annuities.

  • Registered Representative: One who holds broker/dealer securities licenses, such as Series 6, 63, 7, etc.

  • Investment Advisor: One who holds a Series 65 license and is an Investment Advisor Representative (IAR) for a Registered Investment Advisory (RIA) firm.

Whenever I read that someone is promoting themselves as a "fiduciary advisor", they are saying that they are an Investment Advisor regulated to provide advice about securities under the Investment Advisers Act of 1940.