The fiduciary standard legally obligates advisors to put your interest before their own. Advisors that work under a fiduciary standard must disclose any conflict of interests and share with you whether they benefit from recommending any products or other professionals. They must be transparent as to fees the advisors gets for that advice.
In contrast, the suitability standard is a standard requires advisors to suggest investment products that are appropriate for you. There is no standard to conclude that the investment will help you achieve your goals or is in your legal best interest. Also, there is no requirement to fully disclose any conflicts of interest, potentially allowing an advisor to recommend products that may provide higher commissions for themselves instead of similar products with lower fees.
There are wonderful advisors and poor advisors that work under both the fiduciary and suitability standard. We work under the fiduciary standard and highly value the trust we know it provides.
An advisor’s professional designations and experience matter. It gives you great insight as to the advisor’s knowledge and areas of expertise. There are over 100 different types of credentials and they can be very confusing. If you