Fiduciary

Fiduciary – A fiduciary is an individual or organization entrusted with a legal and ethical duty to act in the best interests of another party, often called the principal or beneficiary. Fiduciaries must prioritize the interests of their clients over their own and avoid conflicts of interest. Key Responsibilities: Act with loyalty, honesty, and good faith. Make decisions that benefit the client or beneficiary, not themselves. Maintain transparency and accountability in all actions.

Examples: of fiduciaries: Trustees managing a trust or estate. Financial advisors or investment managers. Company directors acting on behalf of shareholders. Key Point: Fiduciary duty is one of the highest standards of care in law and finance, ensuring that those entrusted with responsibility act with integrity and diligence.