Fiduciary Responsibility

Fiduciary responsibility refers to the legal obligation someone has to act in the best interests of another person or organization. This person, called a fiduciary, must prioritize their client’s needs over their own, exercising careful judgment, honesty, and loyalty. Common examples include financial advisors, trustees, and company directors. The core principle is trust—fiduciaries are entrusted to manage someone else’s assets or affairs responsibly and ethically, avoiding conflicts of interest and ensuring transparency to protect the interests they serve.