When it comes to to choosing a financial professional to help guide your future investment decisions, the word fiduciary gets used a lot. But not all fiduciaries are the same. Understanding the differences between types of advisors can help you avoid costly mistakes, uncover hidden conflicts, and build lasting confidence.
Let’s take a closer look at the types of financial professionals you may encounter and how fiduciary standards differ.
Know Who You’re Working With
There are three common categories of financial professionals. While they may all offer similar services, it’s important to note that their obligations to you vary widely.
- Broker-dealers are held to a “best interest” standard, but they can still earn commissions and sell proprietary products, which may create conflicts of interest. While they are required to disclose any conflicts, it does not impose a fiduciary duty or require an ongoing obligation to act solely in your best interest.
- Registered Investment Advisors (RIAs) are held to a fiduciary standard, meaning they are legally obligated to act in your best interest. They typically charge fees for their services, either as a percentage of assets under management or on an hourly or fixed fee basis to help mitigate conflicts of interest.
- Banks and Trust Companies, whether regulated federally or at the state level, perform trust and fiduciary activities in a fiduciary capacity. Like RIAs, they are legally obligated to act in your best interests. Fees are charged for services rather than commissions or other product fees, providing reassurance that your investments are being managed with your well-being as the primary concern.
The Trust Point and Emerj360 Difference
At Trust Point and Emerj360, we believe fiduciary duty is more than a rule — it’s a relationship built on transparency, objectivity, and trust.
Unlike many firms, Trust Point and Emerj360 are regulated by the Wisconsin Department of Financial Institutions, which upholds some of the most rigorous reporting and ethical standards in the industry. All of our services are delivered in a fiduciary capacity. We work exclusively on a fee-only basis, do not sell proprietary products or earn commissions, proactively avoid conflicts of interest, and are committed to acting in your best interest at all times.
Our team-based approach ensures you receive objective, expert guidance tailored to your goals and values, without the noise of incentives or hidden fees. At Trust Point and Emerj360, we sit on your side of the table, helping you navigate your financial life with confidence, clarity, and care.
Your goals come first. Always.
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By: Blake Barnes, JD, CPA, Senior Fiduciary Officer and Heather Jordan, CFP®, MBA, Managing Director – Emerj360
