Every week, you see commercials or advertisements that urge you to plan your financial future.
Plan for your financial independence so you can retire!
Sign up for this or that service to maximize your investments!
Choose carefully and plan even more carefully so you don’t get nailed on taxes!
It can be overwhelming. Deciding on investment options, tax considerations and estate planning—there’s so much to know, and the average person can’t navigate it alone.
At this moment, they need someone legally and ethically bound to put their interests in order, unlike other advisors. This is where professional fiduciaries, like a fiduciary financial advisor, step in.
What does a fiduciary advisor do?
A fiduciary financial advisor has a legal and ethical duty to always act in the client’s best interest. This is called fiduciary duty.
Every recommendation a fiduciary gives must meet these high standards, making sure clients get advice that truly benefits them.
More people today want advisors they can trust with their investments and retirement plans. Fiduciary advisors stand out because they must always put your interests first—unlike some financial professionals who may not have the same legal requirement.
A fiduciary must:
- Compare different investment strategies and choose what’s best for you
- Disclose any possible conflicts of interest or incentives
- Give advice that’s honest and unbiased
While the steps to becoming a fiduciary advisor are similar to those for other financial advisors, the difference is the focus on trust, legal duty, and strict ethical standards. These rules are reinforced by organizations like the Certified Financial Planner Board® ( CFP®), which requires advisors to act as fiduciaries, and by federal regulations such as ERISA.
If you’re building a career as a fiduciary advisor, keeping this mindset will help you earn long-term trust and build strong client relationships.
Education needed to become a fiduciary advisor
A strong formal education provides the technical knowledge necessary for an advisor. Most students begin their academic journey with a bachelor's degree in finance, accounting, business or economics. These programs teach the core economic principles, financial analysis, and investment opportunities. In this profession, many advisors also pursue a master's degree, such as an MBA or a master's in financial planning. These programs may take several years; however, they will help professionals to deepen their expertise and stand out in the field, potentially leading to a respected designation.11
Credentials for fiduciary financial advisors
To stand out even more as a financial advisor, go beyond the basics, add key licensing credentials, specialized training, certifications and relevant professional experience, and become a certified financial fiduciary.
- Certified Financial Planner® (CFP®): The curriculum for this certification covers asset management planning, retirement and legacy planning, risk management and tax strategies. CFP professionals are held to high standards, meaning they must act in the client's best interests. Earning the CFP shows you have the technical skills and knowledge for financial planning.10
- The Chartered Financial Consultant® (ChFC®) and Certified Trust and Fiduciary Advisor (CTFA®) have similar credentials emphasizing comprehensive principles and financial advice. Each certification requires coursework and long-term financial planning, insurance, and succession planning strategy exams.9
- Certified Financial Fiduciary® (CFF®) designation: This credential emphasizes fiduciary responsibilities. To earn the CFF designation, you need a relevant degree plus 5 to 10 years of professional experience. Then you must pass the exam and a thorough background review. Once you have passed, you must enroll with the National Association of Certified Financial Fiduciaries® (NACFF®) to use the CFF designation title. The NACFF has strict fiduciary standards for designees, including upholding the code of ethics.
- Continuing Learning: It is recommended that any ongoing education requirements be fulfilled to stay current. For instance, CFP professionals are required to complete continuing education credits on a regular basis. This ensures that your knowledge of compliance regulations, products, and best practices is up to date.
Adapting these educational steps prepares you technically and demonstrates to clients that you are committed to high ethical standards.
For example, a bachelor's degree gives you foundational knowledge in finance and investments, while certifications like the CFF designation explicitly focus on acting in the client's best interest. Together, they develop the ideal skill set and credibility for a fiduciary financial advisor.
Gaining practical experience as a fiduciary financial advisor
While the classroom is essential, real-world experience is what brings your education to life. When you're starting this career path, look for internships or entry-level roles where you can assist or shadow experienced fiduciary advisors.
This on-the-job training helps you learn how to analyze investments, develop the proper plans under supervision and manage client portfolios. For example, working with clients who are saving for college or planning for financial independence shows how different investment vehicles and strategies can meet specific targets.
Establishing real-world, practical experiences also meets regulatory requirements. Many states have specific requirements mandating a certain amount of professional experience to qualify as a fiduciary.
For example, a state regulator may require at least five years of finance-related work if you have a degree and several more years without one. Always check your state's bureau requirements through the North American Securities Administrators Association (NASAA) or securities regulator.
Additionally, remember to focus on developing ethical habits and building trust. When working with clients, demonstrate a client-first attitude and transparency. Fiduciary advisors stand out by their practices of fully disclosing fees and any conflicts. Maintaining a clean record and documenting compliance with ethical standards is crucial.
Here are some other ways to get that experience:
- Mentoring and networking: Learn directly from established advisors. Join finance associations to find mentors and clients. For example, the Financial Planning Association.
- Regulatory check: Be prepared to complete any required background assessments or evaluations. This is key, especially if you are subject to a criminal screening! Ethical scrutiny is higher for fiduciaries.
- Financial planning: Practice crafting financial plans. Compare various financial instruments and strategies objectively to meet their goals.
- Areas of expertise: Gain exposure to tax-advantaged accounts, retirement plans (401(k), IRAs), and asset planning. Real-world experience in these areas shows you can help with long-term goals like legacy planning and retirement savings.
Getting licensed and registered as a fiduciary financial advisor
Acting as a fiduciary advisor in the United States means operating under the Investment Advisers Act 1940.
To do this, you have to pass the Uniform Investment Adviser Law Examination, the Series 65 exam, or the equivalent Series 66, along with a securities license. Passing these exams allows you to register as an Investment Adviser Representative (IAR).
Once you pass the exam, you’ll need to register with the right regulator. If you work for a Registered Investment Advisor (RIA) firm, they’ll handle enrollment for you. If you manage over $100 million in assets, you can register with the SEC yourself. Otherwise, you’ll register with your state’s securities office.
Registration means filling out forms about your education, job history, and any legal or disciplinary issues. This usually includes Form ADV. You must share everything honestly, even if your background is clear. Some states also require a criminal background check or fingerprinting.
Pass a background check for fiduciary advisors
Because fiduciary advisors handle sensitive finances, a background check is a standard part of the hiring and registration process. Both the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) require these screenings.
They look for past issues like fraud, embezzlement, forgery or money laundering that could put clients at risk.
A criminal record doesn’t always mean you can’t become an advisor, but some offenses—especially financial crimes—can lead to your application being denied right away.
Additional licensing and registration steps for advisors
If you want to sell insurance or investments, you’ll need to get the right licenses, such as the Series 7 or 63 for securities, or a state insurance license. These roles use a suitability standard, so it’s important to always put your clients’ interests first. If you earn the Certified Financial Fiduciary® (CFF®) title, you’ll also need to register with NACFF before you can use it officially.
To meet federal and state requirements for this career, be sure to pass the Series 65 exam or a similar test. You’ll also need to fill out and submit any required forms, like Form U4 or Form ADV, and pay all necessary fees. It’s important to keep your registrations up to date by renewing them when needed and completing any required continuing education, since some states and certifications have specific renewal deadlines.
Finally, always make sure your actions follow fiduciary practices. For example, you should note your commitment to the fiduciary standard on your Form ADV.
Continuing education for fiduciary financial advisors
To be a successful fiduciary advisor, you need to keep learning throughout your career. Continuing education is required in most states, and it’s important to stay updated on regulations and best practices. Fiduciary standards can change when new rules come out, so make sure you’re always in the loop. For example, the CFP Board® requires regular continuing education, and many states have similar requirements for investment and ethics training.
Joining industry groups can help you keep your knowledge fresh. Organizations like the National Association of Personal Financial Advisors (NAPFA) or the Financial Planning Association (FPA) offer resources, conferences, and networking opportunities that support your growth.
Uphold fiduciary standards daily
Being a fiduciary means always putting your client’s interests first. Explain your fees, any possible conflicts of interest, and all investment choices clearly. Keep good records of meetings, disclosures, and recommendations—you might be reviewed or audited, especially if you work with retirement plans or larger companies.
Fiduciary advisors stand out for their honesty and loyalty. Sometimes that means advising against a high-commission product if a lower-fee option is better for the client, or even turning down clients whose goals don’t align with ethical standards. Over time, this commitment builds your reputation and helps you earn referrals.
Becoming a fiduciary financial advisor can be a very rewarding experience precisely because of this high-trust status. Your clients are placing their futures in your hands, and they are often grateful for your guidance and direction in what can otherwise be an overwhelming array of decisions.
Many people are surprised to learn that you can earn a Bachelor’s degree in Finance in as few as 18 months.1 Our fully-online program prepares you for the Level I Exam of the Chartered Financial Analyst® (CFA®) credential.
To learn more about building a strong academic foundation for this career, explore the bachelor's degree in finance offered at Rasmussen University. This program provides the essential knowledge and skills to begin your path toward becoming a fiduciary financial advisor.
1Certified Financial Fiduciary® is a registered trademark of American Financial Education Alliance
2CTFA® is a registered trademark of American Bankers Association
3ChFC®is a registered trademark of The American College
4Chartered Financial Consultant® is a registered trademark of The American College
5CFP® is a registered trademark of Certified Financial Planner Board of Standards Center for Financial Planning, Inc.
6Certified Financial Planner® is a registered trademark of Certified Financial Planner Board of Standards Center for Financial Planning, Inc.
7CFP Board® is a registered trademark of Certified Financial Planner Board of Standards Center for Financial Planning, Inc.
8Certified Financial Planner Board of Standards Inc.® is a registered trademark of Certified Financial Planner Board of Standards Center for Financial Planning, Inc.
9Specific coursework and work experience, may be required to become a Chartered Financial Consultant. It is important to check the specific education and work experience requirements by contacting the appropriate board or agency.
10Specific coursework and work experience, beyond a bachelor’s degree, is required to become a Certified Financial Planner. It is important to check the specific education and work experience requirements by contacting the appropriate board or agency.
11Rasmussen University’s Finance Bachelor’s degree. Business Management, Accounting Bachelor’s degree and Master of Business Administration degree programs are not designed to prepare graduates for any state-issued professional license or certification and has not been approved by any state professional licensing agency. For further information on professional licensing requirements, please contact that appropriate board or agency in your state of residence. Rasmussen University does not offer any undergraduate or graduate degree programs in Economics or in Financial Planning.
12NACFF® is a registered trademark of National Association of Certified Financial Fiduciaries LLC
13National Association of Certified Financial Fiduciaries® is a registered trademark of National Association of Certified Financial Fiduciaries LLC
