What is the Fiduciary Standard?

Registered Investment Advisors are bound to a fiduciary standard that was established as part of the Investment Advisers Act of 1940. They can be regulated by the SEC or state securities regulators, both of which hold advisors to a standard that requires them to act and to provide advice only in their client's best interests.  This involves the advisors disclosing any conflicts of interest that may violate this standard and they owe their clients a duty of undivided loyalty and utmost good faith.