The Fiduciary Illusion — What Most Clients Don’t Realize
“Are you a fiduciary?” has become the magic question. Every advisor says yes — because who’s going to say no?
The problem is, “fiduciary” isn’t all-the-time for many firms.
Some wear the fiduciary hat when managing money, then swap it for a broker hat when they sell something. Clients never see the switch. They assume the rule stays the same.
It doesn’t.
And truthfully, I think the fiduciary word is overused.
I used to get asked if I was a CFP® all the time — now I’m asked if I’m a fiduciary five or ten times for every time I’m asked about my certification.
There are good guys at every firm, and bad ones too, and I’ve always said the name on the back of the jersey matters more than the name on the front.
Fiduciary questions may eliminate some advisors, but it’s not the end-all, be-all.
A true fiduciary is fiduciary always — no exceptions and not most of the time. If your advisor can’t say that plainly, the duty is conditional.
The industry blurs these lines on purpose. Regulations allow dual registration, so someone can be both broker and advisor. The disclosures say so — in font size nine, page six of a 40-page document — but nobody reads that.
If you want clarity, don’t ask, “Are you a fiduciary?”
Ask, “Are you a fiduciary all the time, for everything you do?”
The way they answer tells you everything.
