An Investment Advisor is subject to the Investment Advisors Act of 1940 (The Act) and is considered a fiduciary. The word "fiduciary" comes from the Latin word for "trust."
There are five major responsibilities a fiduciary has when it comes to clients. They are:
1) to put clients' interest first;
2) to act with utmost good faith
3) to provide full and fair disclosure of all material facts;
4) not to mislead clients; and
5) to expose all conflicts of interest to clients.