What legal obligation do fiduciaries have?

Fiduciaries have a legal and ethical obligation to act in the best interest of those they represent. This relationship is built on trust, where the fiduciary is expected to manage the assets or interests of another party with the utmost care, loyalty, and good faith. This duty requires the fiduciary to avoid conflicts of interest and to make decisions based solely on what will benefit the client or beneficiary, rather than their own personal gain or that of their organization.

The primary focus for a fiduciary is to enhance and protect the interests of their clients, which sets a high standard not only of loyalty but also of transparency, requiring them to disclose all relevant information that may affect the interests of those they serve. Such a commitment to the best interest of the client is fundamental to maintaining ethical practices in various professions, including finance, law, and healthcare.