Fiduciary

A legal obligation to act in a client's best interest. Investment advisers registered with the SEC or state regulators owe a fiduciary duty under the Investment Advisers Act of 1940. Broker-dealers do not owe a fiduciary duty — they are held to the lower suitability standard or, since 2020, Regulation Best Interest.

Often confused with:

Suitability, Regulation Best Interest (Reg BI)