Choosing the Right Wealth Advisor, Part 3: Who You Can Trust, And Why

Trust is not built on investment performance alone. It is built on alignment, transparency, and accountability. The CFA Institute has found that investors who understand how advisors operate have greater confidence in their advisory relationships.¹ Education reduces uncertainty, and uncertainty is often what undermines trust.

This is the third article in a three-part series focused on educating investors about how to choose a wealth advisor. Here, the emphasis is on fiduciary responsibility, professional standards, and how referrals can help you identify advisors worthy of long-term trust.

Learn about compensation

You want to choose a wealth advisor who puts your interests first. That sounds obvious, but unfortunately, it isn’t always the case. We believe that understanding an advisor’s motivations and incentives can help you avoid potential conflicts of interest. Asking how they get paid and why they recommend certain investments is a great starting point when selecting the right advisor for you.

Choose a fiduciary

One way to help reduce conflicts of interest is to limit your search to wealth advisors who are held to a strict fiduciary standard. Under the Investment Advisers Act, a fiduciary has the legal obligation to put your interests ahead of their own at all times, and to reduce any conflicts of interest.²

There are a few unique requirements that come along with the fiduciary standard, and we think they could make a big difference in what to expect from your wealth advisor, including:

• Disclosure: When there is a conflict of interest or an incentive to recommend a particular product, a fiduciary must provide disclosure³

• Duty of care: There is both an ethical and legal duty to the client, which requires advisors to make decisions in good faith and a reasonably prudent manner⁴

• Duty of loyalty: This requires an advisor to be completely loyal to the client at all times and imposes the responsibility to avoid possible conflicts of interest⁵

Fiduciary vs. Reg BI

Alternatively, the SEC maintains a standard of contact rule referred to as Regulation Best Interest (Reg BI). Established in 2020 and notably more stringent in conduct requirements than the previous “suitability standard,” Reg BI requires broker-dealers (and associated persons) to put their retail clients’ best interests at the forefront when making recommendations “of any securities transaction or investment strategy involving securities, including account recommendations.”⁶ 

Reg BI also requires regular and transparent communication via Form CRS, which is a relationship summary document that the broker-dealer must send to clients at designated times, such as prior to (or at the time of) making a recommendation, or when certain account changes are made. While Reg BI is a significant step forward from the former suitability standard, the requirements to satisfy this regulation are less rigorous than the fiduciary standard.

Ask your family and friends

If you’re starting from scratch or coming from an unsatisfactory experience with a wealth advisor at another firm, you may be wondering where to start your search for an advisor you can trust. 

Many people naturally reach out to their network of family and friends to solicit recommendations. This can be a good starting point since you can get direct feedback on an advisor’s track record and client service. Plus, you may share similar values and preferences as family members and those within your social circle.

However, keep in mind that your financial needs might not mirror those of your family and friends. For instance, you may need to look for a wealth advisor with proven experience in managing private wealth or more complicated business or financial structures.

Talk to your other professionals

Another potential source of recommendations is other trusted financial professionals. Your CPA, for example, likely has a strong understanding of your financials and may be able to match you with an advisor from their network of contacts who is appropriately experienced in the areas you need.

Ask for references

Remember to vet potential advisors using client references. While it’s not the only thing you should care about, speaking to existing clients can give you an idea of what to expect. Talking to clients with similar financial circumstances as yours is often valuable. 

Check online, but be careful

It may also help to conduct an online search of prospective advisors to see what qualitative comments you might find. Just remember to take any comments with a grain of salt since they can be overly biased—positively or negatively.

Bottom line

Choosing a fiduciary wealth advisor whom you can trust takes some research and considerable legwork, but in our view, it’s worth the time and effort. Not only might you enjoy greater peace of mind that your investments are well looked after, but conducting due diligence and finding the right advisor for your particular needs might also help you gain more confidence in your financial plan—and in your ability to reach your long-term financial goals.

Read Part 1 and 2 of this series now:  

Choosing the Right Wealth Advisor, Part 1: Getting to Know the Person Behind The Advice

Choosing the Right Wealth Advisor, Part 2: Understanding Their Investment Philosophy

ABOUT THE AUTHOR

CONTENT DISCLOSURE

Corient refers to the separate but affiliated entities under common control of Corient Holdings Inc. These entities include but are not limited to Corient Private Wealth LLC, Corient IA LLC, Corient Family Office LLC, Corient Tax LLC, Corient Trust Company LLC and Corient Aviation LLC. Each service may be provided under separate agreements and separate fees may be charged for family office services, wealth management services or any other service provided by a Corient affiliate and/or third party. Additional fees and charges may be applied for other services or products Corient, its affiliates or unaffiliated third-parties provide to clients. Additional fees, such as custodial fees, fund expenses and third-party investment manager fees, may also be applied to client accounts.

This information is for educational purposes and is not intended to provide, and should not be relied upon for, accounting, legal, tax, insurance, or investment advice. This does not constitute an offer to provide any services, nor a solicitation to purchase securities. The contents are not intended to be advice tailored to any particular person or situation. We believe the information provided is accurate and reliable, but do not warrant it as to completeness or accuracy. This information may include opinions or forecasts, including investment strategies and economic and market conditions; however, there is no guarantee that such opinions or forecasts will prove to be correct, and they also may change without notice. We encourage you to speak with a qualified professional regarding your scenario and the then-current applicable laws and rules. 

Different types of investments involve degrees of risk. The future performance of any investment or wealth management strategy, including those recommended by us, may not be profitable or suitable or prove successful. Past performance is not indicative of future results. One cannot invest directly in an index or benchmark, and those do not reflect the deduction of various fees that would diminish results. Any index or benchmark performance figures are for comparison purposes only, and client account holdings will not directly correspond to any such data.

Advisory services are offered through Corient Private Wealth LLC, a registered investment adviser (“RIA”) regulated by the U.S. Securities and Exchange Commission (“SEC”). The advisory services are only offered in jurisdictions where the RIA is appropriately registered. The use of the term “registered” does not imply any particular level of skill or training and does not imply any approval by the SEC. For a complete discussion of the scope of advisory services offered, fees, and other disclosures, please review the RIA’s Disclosure Brochure (Form ADV Part 2A) and Form CRS, available upon request from the RIA and online at https://adviserinfo.sec.gov/. We also encourage you to review the RIA’s Privacy Policy and Code of Ethics, which are available upon request. 

Our clients must, in writing, advise us of personal, financial, or investment objective changes and any restrictions desired on our services so that we may re-evaluate any previous recommendations and adjust our advisory services as needed. For current clients, please advise us immediately if you are not receiving monthly account statements from your custodian. We encourage you to compare your custodial statements to any information we provide to you.

5221594 – March 2026