One key credential sets trustworthy financial advisors apart, and many still lack this qualification

Group 1 - The importance of working with a fiduciary financial advisor in the U.S. is emphasized, as not all advisors are required to prioritize clients' interests [1][2] - Registered Investment Advisers (RIAs) are legally obligated to act as fiduciaries, which includes a duty of care and a duty of loyalty towards their clients [2][3] - The duty of care requires advisors to understand clients' financial situations and make recommendations that serve their best interests [2] - The duty of loyalty mandates that advisors must prioritize clients' interests over their own and disclose any potential conflicts of interest [3] Group 2 - The U.S. Securities and Exchange Commission (SEC) has reaffirmed that fiduciary obligations cannot be waived by contract or disclosure, making it illegal for fiduciary advisors to act against clients' best interests [3] - To determine if an advisor is a fiduciary, clients should directly ask the advisor about their fiduciary status during initial conversations [4] - Public databases such as the Investment Adviser Public Disclosure (IAPD) website can be used to verify if an advisor is registered, the services they provide, and any disciplinary history [5] - The Financial Industry Regulatory Authority's (FINRA) BrokerCheck tool can be utilized to review the licensing, employment history, and any complaints against advisors who also sell securities [6]