When considering working with a financial professional this is the first question you should ask. If the answer is not yes, stop. This article succinctly lays out the importance of the Fiduciary standard and how the brokerage industry has resisted actions to make it the only standard. Brokerages prefer the Suitability standard which as you might guess favors them by completely watering down the level of “care” that must be used by its employees. Rather than being required to act in your best interests, Suitability in essence allows brokers to act in there own best interest by selling you products and services that maximize their income, often to the detriment of their clients.
As the article illustrates – you wouldn’t let a car dealer just sell you a car that just made them the most money. Don’t hire a financial professional who would do the same!