Fiduciary Duty Explained: Why It Protects Investors from Conflicts of Interest

Most investors assume the financial professional they work with is obligated to act in their best interests. It feels intuitive, after all, investment advice implies trust. But in the financial services industry, that assumption doesn’t always hold true. Not every financial professional is required to operate under a fiduciary duty, and that distinction plays a critical role in how advice is structured and delivered. Understanding fiduciary duty helps investors better evaluate the advice they receive and the incentives behind it. In an industry where titles can be broad and responsibilities vary, clarity around fiduciary responsibility matters more than ever.