The Fiduciary Gap: Why True Client-First Advice Is Still Rare—and How to Find It

In financial services, “fiduciary” has become a buzzword—a shorthand for trust and ethics. But how many advisors truly operate under a fiduciary standard, putting your best interests ahead of all else? The answer may surprise you. 

Fewer than 5% of financial professionals in the U.S. operate as true fee-only fiduciaries. That means out of more than 800,000 advisors and brokers, only about 42,000 meet this highest standard of client-first advice. 

Think of it this way: if the financial industry were a neighborhood of 100 houses, only five would belong to advisors who are fully fee-only fiduciaries.  

The other 95? Many are hardworking and trusted advisors—but their compensation models often include commissions or incentives that can create conflicts of interest.  

It doesn’t make them bad advisors; it just means their advice may not always be 100% aligned with your best interests. 

What Does “Fiduciary” Really Mean? 

A fiduciary is legally and ethically obligated to act in your best interest—always. Fee-only fiduciaries take this a step further by eliminating commissions and kickbacks, ensuring advice is never influenced by product sales. 

Unfortunately, many firms blur the lines. Dual-registered advisors can wear two hats: one as a fiduciary and another as a broker incentivized by commissions. For clients, that creates confusion and presents potential conflicts of interest. Be wary of hearing ‘fee-based’ instead of fee-only. 

Why It Matters 

It’s great to assume the best in people, especially those you hire to help with your finances, but it’s important to trust and then verify. Evaluating fiduciary standards help. 

Financial decisions aren’t just about numbers; they shape your life goals, your family’s future, and your legacy. When advice is compromised by sales incentives, the cost isn’t just financial—it’s peace of mind. 

The Industry Problem 

Despite the fiduciary label gaining traction through the 1980’s, the industry remains dominated by sales-driven models at so-called ‘Broker Dealers.’ Even if it doesn’t feel like it, advisors in those situations pitch products, earn incentivizing commissions, and can easily prioritize firm revenue over client outcomes.  

That’s not advice—it’s distribution.  

Here’s a pro tip. If you’re lured in with promises of a ‘no-fee’ solution, it’s likely subsidized by some form of product commissions. Don’t fall into that trap. 

How to Spot the Difference 

When interviewing an advisor, ask: 

• Are you a fiduciary—always? Not just sometimes. 

• Are you fee-only? Or do you earn commissions? 

• How do you prove it? Look for third-party certifications and transparency. 

• Do you get paid to recommend this? Don’t be shy about asking! 

Plancorp: Setting the Standard 

Here’s where we step in. At Plancorp, fiduciary isn’t a marketing term—it’s our DNA: 

• Fee-only fiduciary model since 1983 

• CEFEX-certified for fiduciary excellence since 2008, with annual audits for transparency 

• A holistic planning process that goes beyond investments to align wealth with life goals—a state we call Absolute Wealth Alignment 

• No commissions. No kickbacks. Just proactive, fee-only guidance from a team committed to your success  

Ready to Go Beyond Basic Advice? 

If you’ve outgrown “good enough” financial advice, let’s talk. A 30-minute call with a Plancorp wealth advisor can show you what true fiduciary planning looks like—and why it matters for your future.