Fiduciary vs. Broker: Understanding Legal Standards, Reg BI, and Advisory Costs
Titles matter. Whether you are a teacher, police officer, Federal or non-profit worker, the person helping you with your retirement plan has a specific legal title — and it determines whose interest comes first.
By Tim Hayes, Financial Advisor for the Public and Not-for-Profit Sector
Fiduciary RIAs vs Broker-Dealers
Boston-based financial advisor —
Serving clients Statewide
via in-person, phone, Zoom, and email. Local in-person meetings across Massachusetts.
| Feature | Fiduciary (IAR) | Broker (RR / REGBI) |
|---|---|---|
| Legal Duty | Act in Client's Best Interest (Always) | Act in Best Interest at the Time the Recommendation is Made (Reg BI) |
| Loyalty | To the Client | Mixed Broker/Dealer / Firm & Client |
| Compensation | Typically Fee-Only or Fee-Based | Typically Commission and Transaction-Based |
Advisor Standards
Index Funds vs Active Management: Do Advisory Fees Cancel Out the Savings?
The financial landscape has shifted. With the rise of low-cost indexing and stricter regulations, the old model of high-commission sales is fading. Discover how these changes impact your options.
Index Funds vs Active ManagementFiduciary vs Best Interest | Financial Advisor Guide
With the SEC's new rule and the DOL's updated interpretation of ERISA, the responsibilities of financial professionals, fiduciaries, and planners to their clients have become more aligned.
Fiduciary vs BrokerHow Financial Advisors Get Paid: Fees, Commissions & Fiduciary Advice
Regulations are just paper until they touch your portfolio. Learn specifically how the "Best Interest" rules impact the fees you see—and the hidden costs that might still remain.
Reg BI Fee Impact Analysis
IAR vs. Registered Representative: Two Different Legal Standards
Many employees assume anyone offering financial advice is an “advisor.” However, the legal distinction between an Investment Advisor Representative (IAR) and a Registered Representative (RR) is different. One operates as a fiduciary advisor under the fiduciary standard; the other is paid for transactions.
An IAR is a fiduciary who is legally bound to always act in their client’s best interest. A Registered Representative must act in your best interest, which replaces the previous suitability standard.
Fee-Only vs. Commission Financial Advisors: Understanding Fiduciary Standards and Costs
The conflict of interest inherent in financial services usually stems from compensation. Does your advisor make money when your account grows, or when they sell you a product? Understanding the fee-vs-commission debate is essential for protecting your nest egg.
The “Statutory Employee” Trap for School Employees
Is your advisor “Captive”? Many insurance agents are classified as “Statutory Employees.” This means they get health insurance benefits, but often only if they hit a sales quota for one specific company.
If your advisor is working for their health insurance, they cannot truly shop the market for you. Ask yourself: Is this recommendation for your retirement, or their benefits?
Read More: The Annuity Trap
A+ in All Our Interactions
“I have been served for over 20 years and plan to continue working with Tim. Tim is an intelligent, well-educated, and kind man. Tim has always been available by visit or by phone. He explains what is going on financially and makes every effort to explain and discuss our relationship. It is my pleasure to rate Tim as A+ in all our interactions. I am very pleased with the man, and how he serves his clients as to financial advising.”
Barbara Davis
Client
Testimonial Disclosure: Testimonials are based on individual client experiences and may not represent the experiences of all clients. They are not a guarantee of future performance. Each client’s situation is unique. No compensation has been provided for these testimonials.
My Practice: Independent Fiduciary Advisor Putting Your Best Interests First
Pick how you want to work together—on-demand advice, ongoing portfolio management, or a targeted implementation for smaller accounts.
Second Opinions
Hourly Planning
$200 / Hour
- Retirement income & Social Security timing
- Advice-only: keep your current accounts
- Written recap with specific next steps
Comprehensive Mgmt
Ongoing Advisory
1% Annual Fee or Less
- Active, custom money management
- Scheduled reviews & no sales quotas
- Continuous financial planning support
Account Setup
Implementation Only
Varies by Product
- Ideal for smaller accounts & Roth IRAs
- Specific product implementation
- Available for some 403(b) plans
Financial Advisor Near Me
I’m an Investment Adviser Representative with Cambridge Investment Research Advisors, Inc. (RIA) and a Registered Representative with Cambridge Investment Research, Inc. (broker-dealer). My practice is independent and locally operated—so you work directly with me—while I’m supported by a national compliance, technology, and service platform.
Serving Boston & surrounding: North Shore, South Shore, Merrimack Valley, MetroWest, Cape & Islands, and the South Coast.
View Towns (A–W)
A
- Abington
- Acton
- Amesbury
- Andover
- Arlington
- Ashland
- Attleboro
- Avon
B
- Bedford
- Bellingham
- Belmont
- Beverly — I grew up in Beverly
- Billerica
- Boston — I live in the South End
- Boxford
- Braintree
- Brookline
C
- Cambridge
- Canton
- Carlisle
- Carver
- Chelmsford
- Cohasset
- Concord — My sister-in-law lives in Concord
D
- Danvers
- Dartmouth — Office in Dartmouth
- Dedham
- Dover
- Duxbury
E
- Edgartown — Served from Dartmouth via New Bedford Ferry
F
- Fall River
- Fairhaven — Family in Fairhaven
- Foxborough
- Framingham
- Franklin
- Freetown
G
- Georgetown
- Gloucester — Good Harbor Beach favorite
- Groton
H
- Hamilton
- Hanover
- Harvard
- Haverhill — Lived there five years
- Hingham
- Holliston
- Hopkinton
- Hudson
I
- Ipswich
L
- Lexington
- Lincoln
- Lowell
- Lynnfield
M
- Malden
- Manchester-by-the-Sea
- Mansfield
- Marblehead — Worked at Corinthian YC in college
- Marion
- Martha’s Vineyard — Served via Ferry or Cape Air
- Marshfield
- Mattapoisett — Served from Dartmouth
- Maynard
- Medfield
- Melrose
- Merrimac
- Methuen
- Middleborough
- Middleton
- Milton
N
- Nantucket — Served via Ferry or Cape Air
- Natick
- Needham
- New Bedford
- Newburyport
- Newton
- North Andover
- North Attleborough
- Northborough
- North Reading
- Norton
- Norwell
- Norwood
P
- Peabody
- Plymouth
- Provincetown
R
- Randolph
- Reading
- Revere
- Rockland
- Rockport
S
- Salem — Lived there after college
- Sandwich
- Saugus
- Scituate
- Sharon
- Sherborn
- Somerville
- Southborough
- Stoneham
- Stoughton
- Sudbury
- Swampscott
T
- Tewksbury
- Topsfield
- Tyngsboro
W
- Wakefield
- Walpole
- Waltham
- Wareham
- Watertown
- Wayland
- Wellesley
- Wenham
- Westford — My brother used to live in Westford
- Weston
- Westport — Served from Dartmouth
- Westwood
- Weymouth
- Wilmington
- Winchester — My first boss was from Winchester
- Woburn
Wherever you are in Massachusetts, I provide ongoing support—not just a one-time meeting.
Retirement Rollover Consultation — $200/hr
Learn the costs of your current retirement accounts before you roll them over, and see if a new IRA could get you lower costs and better investment choices.
"My goal is to ensure your retirement plan is built on your best interests, not a product sale."
Book a consultation ($200/hr) or call 508-277-5847 to schedule.