What fiduciary responsibility does a financial adviser have for their clients?

What fiduciary responsibility does a financial adviser have for their clients?
A . Decrease the overall risk of their portfolio
B . Provide their services at a competitive fee
C . Act in the best interests of their clients
D . Offer conservative advice with low risk

View Answer

Answer: C

Explanation:

Fiduciary Duty:

A fiduciary is legally and ethically bound to prioritize the client’s best interests above all else, ensuring transparency, loyalty, and care in decision-making.

Elimination of Other Options:

A: Reducing risk is important but not the primary fiduciary responsibility.

B: Competitive fees are desirable but not a fiduciary obligation.

D: Offering conservative advice is situational and based on client needs, not a fiduciary mandate.

Reference: ICWIM Module 4: Coverage of fiduciary duties in financial advising.