What is a disadvantage of "load" funds in terms of an investment advisor's fiduciary responsibility?

The correct choice highlights a significant concern regarding "load" funds, which are mutual funds that charge a commission or sales fee when shares are purchased, known as a "front-end load," or when they are sold, referred to as a "back-end load." Higher fees associated with load funds can create a conflict of interest for investment advisors. This is because the advisor may be incentivized to recommend these funds over no-load funds, which do not have such fees, to maximize their own commissions rather than focusing purely on what serves the client's best interests.

In fiduciary duty, an advisor is obligated to act in the best interests of their clients. Therefore, the existence of higher fees in load funds poses a challenge to fulfilling this responsibility, as these fees can erode the overall returns on the investment for the client, potentially leading to lower net gains than those offered by lower-fee options.

The other options present valid concerns, but they do not directly address the essence of fiduciary responsibility as it relates to the potential for increased costs to the client due to the fees associated with load funds. Thus, the focus on higher fees aligns directly with the duty of the advisor to prioritize client interests in financial planning.