Why Your Bank's Advisor Isn't Your Fiduciary
Understanding the difference between a fiduciary and a salesperson — and why it matters for your life savings.
By Ali Zaigham Agha · · 3 min read · Last reviewed: 2025-07-01
The Question Nobody Asks
When you sit down with your bank's "financial advisor," ask one question:
> "Are you a fiduciary?"
In most countries, the answer is no. They're a salesperson. Their job is to sell you products that generate revenue for the bank. Some of those products might be suitable for you. But "suitable" and "optimal" are not the same thing.
Fiduciary vs. Suitability Standard
**Fiduciary standard**: The advisor must act in your best interest. They must disclose conflicts of interest. They must recommend the best option, not just a good enough one.
**Suitability standard**: The advisor must recommend products that are "suitable" for someone in your situation. This is a much lower bar. A fund with a 2% fee can be "suitable" even if an identical fund with 0.2% in fees exists.
In the US, the fiduciary rule has been debated for years. In the EU, MiFID II strengthened protections but didn't fully eliminate conflicts. In the UAE and many other markets, the suitability standard still dominates.
How to Tell If Your Advisor Isn't a Fiduciary
1. **They earn commissions on what they sell you.** Ask directly: "How do you get paid?" If the answer involves words like "trail commission" or "distribution fee," they're not a fiduciary.
2. **They recommend their bank's proprietary funds.** If your bank's advisor recommends your bank's funds, there's a conflict. It might still be the right fund — but you need to know the incentive.
3. **They don't discuss fees proactively.** A fiduciary opens with costs. A salesperson opens with returns.
4. **They switch your portfolio frequently.** Every switch generates transaction costs and, often, new commissions. A fiduciary minimizes unnecessary trading.
5. **They can't explain what you own in plain English.** If the product is too complex to explain simply, it might be designed to be opaque.
What a Real Independent Review Looks Like
An independent analyst:
- Earns a flat fee, disclosed upfront
- Has no commission or affiliate relationships
- Doesn't manage your money (no incentive to keep you invested)
- Tells you what you own, what it costs, and what questions to ask
- Doesn't sell you anything after the review
This is what I do. The Portfolio Sanity Check is a flat $349. No upsell. No "premium tier." If the analysis is good, you come back. If it's not, you don't.
The Bottom Line
Your bank's advisor might be a good person. They might genuinely want to help. But the structure they work within creates incentives that aren't aligned with yours. Understanding those incentives is the first step to protecting yourself.
Ask the question. Check the credentials. Then decide.
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*This article is for educational purposes only and does not constitute financial advice. I do not provide personalized investment recommendations or manage client assets.*
Unsure If Your Advisor Is Working for You?
Send your portfolio or a fund fact sheet for a free review. I'll flag the conflicts, the fees, and the one question you should ask before staying put.
Request a free review at [alizaighamagha.com/#contact](https://www.alizaighamagha.com/#contact).