A fiduciary is obligated to act in a client’s best interest, typically under duties of loyalty (put clients first) and care (provide prudent, well-informed advice).

How does fiduciary duty differ from Reg BI and suitability?

Fiduciary duty requires client-first loyalty and care across the advisory relationship. Reg BI is a best-interest standard for recommendations. Suitability requires that a recommendation merely fits the client’s profile.

Do you provide fiduciary investment advice?

Diversified Insurance Brokers does not provide investment advice. We can introduce qualified clients to an independent SEC-registered investment adviser that operates as a fiduciary.

When does hiring a fiduciary matter most?

When coordinating complex, high-stakes decisions—retirement income, taxes, Social Security, Medicare, and insurance—where a documented, client-first process is critical.

How are conflicts of interest handled by a fiduciary?

Fiduciaries must avoid or fully disclose and manage conflicts, and recommend what they reasonably believe is best for the client.

What is a Fiduciary?

Q: Who owes a fiduciary duty?

SEC-registered investment advisers generally owe an ongoing fiduciary duty; ERISA plan fiduciaries and roles like trustees or executors also act as fiduciaries.

Q: Is “fiduciary” the same as “fee-only”?

Not necessarily. Many fiduciaries are fee-only, but fiduciary status refers to a legal duty to put clients first, regardless of compensation model.

Q: Does Reg BI make my broker a fiduciary?

No. Reg BI is a best-interest standard at the time of recommendation; it is not the same as an ongoing fiduciary duty.

Q: How can I confirm someone is acting as my fiduciary?

Ask for a written statement that they act as a fiduciary at all times for your account, how they are compensated, and how conflicts are disclosed and managed.

What is a Fiduciary?

What is a fiduciary? A fiduciary is a person or firm legally obligated to act in a client’s best interest. That duty generally includes the duty of loyalty (put the client first, avoid or fully disclose/manage conflicts) and the duty of care (provide prudent, well-informed advice based on the client’s goals, risk, and circumstances).

Questions about fiduciary vs. suitability?

Get a clear, no-pressure review of how advice standards apply to your situation—investments, annuities, Medicare timing, and more.

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Who Owes a Fiduciary Duty?

SEC-registered investment advisers (RIAs) typically have an ongoing fiduciary duty to advisory clients.
ERISA plan fiduciaries (e.g., some retirement plan decision-makers) owe fiduciary duties to plan participants.
Trustees, executors, attorneys-in-fact act as fiduciaries within their legal roles.

Fiduciary vs. Best Interest vs. Suitability (What’s the Difference?)

“Best interest” and “suitability” are not identical to a full common-law fiduciary duty. Here’s a simplified comparison:

Standard	Who Uses It	Conflict Handling	Scope
Fiduciary Duty (Loyalty & Care)	SEC RIAs; certain ERISA roles	Must avoid or fully disclose & manage conflicts; client first	Ongoing advisory relationship
Reg BI “Best Interest”	Broker-dealers for recommendations	Mitigate/disclose conflicts; not a blanket ongoing fiduciary duty	At the time of each recommendation
Suitability	Traditional brokerage/insurance in some contexts	Conflicts may exist; product must be “suitable” for the client	At the time of sale/recommendation
NAIC Annuity Best Interest	Insurance producers (state-adopted model)	Requires acting in the consumer’s best interest with disclosures	Annuity recommendations at time of sale

What a Fiduciary Process Looks Like

Client-first mandate: Clarify goals, constraints, time horizon, risk capacity, taxes, liquidity.
Prudent methodology: Use documented, repeatable analysis; compare alternatives.
Conflict management: Identify, disclose, and manage conflicts; align compensation where possible.
Ongoing monitoring: Re-evaluate recommendations as circumstances and markets change.

How Diversified Insurance Brokers Fits

Diversified Insurance Brokers is an independent insurance brokerage. We do not offer securities or provide investment advice. For clients who want fiduciary portfolio management, we facilitate introductions to an independent SEC-registered investment adviser that operates under a fiduciary duty. On the insurance side (annuities, life, LTC), we follow state best-interest and suitability rules, compare 100+ carriers, and present options transparently so you can decide what best supports your plan.

When a Fiduciary May Matter Most

Complex coordination (investments, taxes, Social Security, Medicare, annuities)
High stakes—retirement income, portfolio withdrawals, survivor benefits
Desire for documented process, conflict disclosure, and ongoing oversight

Helpful resources:

FAQs: What Is a Fiduciary?

Is “fiduciary” the same as “fee-only”?

Not exactly. Many fiduciary RIAs are fee-only, but “fiduciary” refers to the legal duty to put clients first. Compensation models vary—always ask how your adviser is paid.

Can an insurance professional be a fiduciary?

Insurance producers generally follow the NAIC Annuity Best Interest model (as adopted by states) rather than a broad fiduciary duty. Some professionals also hold RIA registrations separately—ask how roles are delineated.

Does Reg BI make my broker a fiduciary?

No. Reg BI is a best-interest standard for recommendations, not an ongoing common-law fiduciary duty across the entire relationship.

How do I confirm fiduciary status?

Ask your adviser to state in writing whether they act as a fiduciary at all times for your account, how they are compensated, and how conflicts are disclosed/managed.

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Want a fiduciary-oriented roadmap?

We’ll align Social Security, Medicare, insurance, and investments—then connect you with a fiduciary RIA if you qualify.

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Questions? Call 800-533-5969