Fiduciary Status

A person with fiduciary status is legally required to act in the best interests of their client. Fiduciary status requires that the financial advisor is prohibited from engaging in transactions that may involve a conflict of interest, as client interests have to come first. In the current financial environment, only Registered Investment Advisors (RIAs) have fiduciary status. Recent proposals by the Department of Labor to extend fiduciary status to other types of financial advisors such as stockbrokers or registered reps have been delayed. Revised proposals due in early 2012 may extend fiduciary status to broker-dealers and the broader financial advisor community.