What is a Fiduciary Financial Planner?

Posted by LearnLux

Who can you trust when it comes to financial guidance? For employers and employees alike, there can be a lot of confusion.

Research by Personal Capital found that nearly 50% of Americans incorrectly believe that all financial planners are legally required to act in their best interest. This is a dangerous misconception, as it can lure employees at all levels of financial confidence into getting biased (and often costly) guidance.

When it comes to offering a financial wellbeing program with experts you can trust, look for a solution with Certified Financial Planner™️ professionals who are true fiduciaries.


Who are Fiduciary Financial Planners?

“Fiduciary” is a fancy word that represents the ethical standard to which a financial planner is held for providing guidance and managing money. 

Let's dive into what exactly a fiduciary is and why it matters in supporting employees' holistic financial health.

The official Fiduciary Standard was created in 1940 with the Investment Advisors Act. It states that:

  • A financial planner must place his or her interests below that of the client. 
  • A financial planner is prohibited from buying securities for their account prior to buying them for a client. 
  • A financial planner must do their best to make sure investment guidance is made using accurate and complete information. The analysis must be as thorough as possible.
  • A financial planner must avoid conflicts of interest. As a fiduciary, a planner must disclose any conflicts of interest or potential conflicts of interest. 

Why Does Fiduciary Responsibility Matter?

Fiduciary responsibility serves as the foundation of trust and accountability for workplace financial wellbeing programs. It matters because it legally obligates financial planners who serve employees to act prudently and in the best interest of employees. Upholding fiduciary standards not only safeguards employees' financial interests, but also fosters transparency, ethical conduct, and long-term financial stability within organizations.

  1. Legal Obligation

    Fiduciaries are bound by law to act prudently and in the best interests of plan participants. This legal obligation helps safeguard employees' financial interests and ensures transparency and accountability in managing workplace benefit programs.

  2. Ethical Standards

    Beyond legal requirements, fiduciaries uphold ethical standards that promote employee trust and confidence. By prioritizing the wellbeing of participants, fiduciaries demonstrate integrity and commitment to fostering a positive work environment.

  3. Financial Protection

    Employees rely on fiduciaries to make sound decisions regarding their financial health. Failing to fulfill fiduciary duties can have serious financial consequences for both employees and employers, including potential lawsuits and regulatory penalties.

Explore the 2024 Financial Wellbeing Buyer's Guide


How HR and Benefits Teams Can Navigate Fiduciary Responsibilities in Financial Wellbeing Programs

As stewards of employee wellbeing, confidently navigating fiduciary responsibilities is paramount for HR and benefits professionals. There are three key principles that stand out as pillars for success:

  1. Due Diligence

    HR and benefits professionals should conduct thorough due diligence when selecting a holistic financial wellbeing program that offers digital tools and 1:1 guidance from financial planners. Assessing the fiduciary status of service providers and ensuring they adhere to fiduciary standards is essential.

  2. Transparent and Clear Communication

    Communicate openly with employees about the fiduciary responsibility governing workplace financial programs. Providing clear information about how the program's financial planners will act in their best interest can foster trust and empower employees to make informed decisions about their financial futures.

  3. Continuous Monitoring

    Fiduciary responsibility is an ongoing commitment. HR and benefits professionals should regularly monitor the performance of financial wellbeing programs and ensure fiduciaries continue to act in the best interest of employees.


In the realm of workplace financial wellbeing, understanding fiduciary responsibility is essential for HR and benefits professionals. By prioritizing the interests of employees and upholding fiduciary standards, organizations can cultivate a culture of trust, transparency, and financial empowerment. Partner with an unbiased program that employs Certified Financial Planners™️ who are true fiduciaries. By doing so, you'll both empower employees as they build confidence around their money, in addition to providing yourself (as their employer) some peace of mind.

Tags: financial advisors

Explore Financial Wellbeing with Guidance from Fiduciary Financial Planners.

LearnLux is the #1 most-trued provider of workplace financial wellbeing with Certified Financial Planner™️ professionals who are true fiduciaries. Set-up a demo and see the difference for yourself.