Telepeer

Conflicts with your adviser: Is the pitch too good to be true?

March 22, 2026

This month, we’re looking at potential conflicts of interest in the world of financial advisers, planners and accountants.

Last week, we explored how a financial adviser gets paid and regulatory standards for the industry. Today, we look at adviser promises and pitches.

Too good to be true

When an adviser promises or guarantees a return that does not seem realistic, it usually is not.

Stock market returns are never guaranteed and will fluctuate — sometimes positive, sometimes negative — over different time periods. While historical performance can provide context, future returns are unknown unless an investment offers a fixed return. If an adviser promises a specific outcome, ask for clarification and written documentation to support the claim, and conduct your own research before investing.

Pressure to buy a product

If an adviser pressures you to purchase a product, such as an annuity, do not commit until you fully understand what you are buying and why it has been recommended. An annuity is a financial contract with an insurance company that provides a guaranteed income stream, either immediately or at a future date.

Ask what commission the adviser will receive from the sale and how the surrender charge is calculated. A surrender charge is a fee assessed if you terminate the contract before the surrender period ends. According to annuity.org, surrender periods can last as long as 10 years, though some may be as short as three years. If you exit an annuity during the surrender period, you may forfeit a portion of your investment through these charges.

Proprietary funds in your portfolio

Conflicts of interest may arise when assets are invested in proprietary funds. Proprietary funds are created, managed, and distributed by the same financial institution that offers them to investors. The risk to the client is that a fund may be selected because it benefits the adviser or their firm financially, rather than because it is the best option for the client.

Excessive trading

Advisers who trade stocks and securities on behalf of clients may be incentivized to place excessive trades to generate commissions, a practice known as churning. This unethical behavior involves frequent buying and selling of securities primarily to increase fees, rather than to benefit the client. Churning violates an adviser’s duty of care and obligation to act in good faith, and may expose the adviser to regulatory action or legal claims by the client.

Working with others

Reputable advisers recognize that informed clients make better partners and that transparency builds long-term trust. An unethical adviser may attempt to create dependency by discouraging you from seeking a second opinion or collaborating with other professionals. Healthy adviser relationships support open communication with your accountant, estate planning attorney and trusted family members involved in financial decisions.

To help protect yourself from conflicts of interest, consider asking the following questions when hiring a financial adviser:

—Are you a fiduciary?

Advisers who act as fiduciaries are legally obligated to place their clients’ best interests first.

—Can I review your Form ADV?

Form ADV is a disclosure document required by the SEC and provided when you enter into an investment advisery relationship. It outlines the firm’s services, fee structure, standards of conduct, and any disciplinary history.

—What is your fee structure?

Understand how the adviser is compensated. Are they fee-only, fee-based, or commission-only? Do they participate in revenue-sharing arrangements Fee-only advisers do not receive commissions from product sales, which can help reduce potential conflicts of interest.

The next time you receive an invitation from a financial adviser to attend a free dinner accompanied by a presentation, feel free to enjoy the meal. Just remember that what is being sold may be in the adviser’s best interest — not necessarily yours.

Source: Annuity.org | www.annuity.org/selling-payments/surrendering

Helpful resources

— INRA BrokerCheck: brokercheck.finra.org

Use this tool to research fee-based advisers, brokers, and insurance or annuity sales professionals governed by FINRA.

— SEC Investment Adviser Public Disclosure: www.advisorinfo.sec.gov

Use this site to review fee-only registered investment advisory firms and investment adviser representatives.

— Certified Financial Planner Board of Standards: letsmakeaplan.org

Use this site to verify whether an adviser holds the certified financial planner designation, a recognized standard for financial planning professionals who are required to act in their clients’ best interests.

Teri Parker is a certified financial planner and vice president for the Riverside office of Captrust Financial Advisors. She has practiced financial planning and investment management since 2000. Contact her via email at Teri.parker@captrust.com.

Orange County Register

News Details

Conflicts with your adviser: Is the pitch too good to be true?

Too good to be true

Pressure to buy a product

Proprietary funds in your portfolio

Excessive trading

Working with others

Helpful resources

News

CONTACT INFO

QUICK LINKS

SERVICES

CURRENT NEWS