Investment advisors are bound to a fiduciary standard that was established as part of the Investment Advisors Act of 1940. As part of this act and the subsequent Dodd-Frank Wall Street Reform Act of 2010, investment advisors can be regulated by either the Securities and Exchange Commission (SEC) or state securities regulators. Both of these bodies hold advisors to a fiduciary standard that requires the advisor to put their clients’ interest above their own at all times and adhering to the duties to loyalty and care. The advisor must do his best to make sure the investment advice is made using accurate and complete information and is as thorough as possible. The advisor must also avoid conflicts of interest and most disclose any potential conflicts. Additionally, the advisor needs to place trades under a “best execution” standard, in other words, trade securities with the best combination of low cost and efficient exposure.