Who is referred to as a fiduciary?

A fiduciary is someone who is entrusted to manage another person's assets or affairs, and this relationship is based on trust and confidence. This trust obligates the fiduciary to act solely in the best interests of the person they represent, ensuring that decisions are made with care, loyalty, and transparency. The essence of being a fiduciary lies in this trust—whether it pertains to financial matters, legal affairs, or other types of personal representation.

The role of a fiduciary can be found in various professions, but what distinguishes them is the responsibility to prioritize the interests of their clients or beneficiaries above their own. This concept is foundational in fields such as finance, estate planning, and even legal services, where individuals or professionals manage significant assets or make crucial decisions on behalf of others.

In contrast, individuals engaged in competitive insurance practices, professionals in financial advising, and entities responsible for corporate risk analysis have specific roles and responsibilities that may not always include a fiduciary duty towards clients or parties they serve. While they may operate under ethical guidelines and standards in their fields, the defining characteristic of a fiduciary is the heightened obligation of trust and care in managing someone's interests.