Fiduciary duties are legal and ethical obligations requiring an Agent (fiduciary) to act in the best interests of their clients. The 5 core fiduciary duties are loyalty (putting the client first), care (making informed decisions), good faith (acting honestly), confidentiality (protecting information), and disclosure/obedience (transparency and following instructions)
The 5 Fiduciary Duties
Duty of Loyalty:
Acting in the client’s best interest, avoiding conflicts of interest, and not using client’s information for personal gain.
Duty of Care:
Making informed, prudent, and diligent decisions by thoroughly reviewing all material information before acting.
Duty of Good Faith:
Acting with honesty, integrity and a sincere intent to further your client’s interests, avoiding fraudulent or illegal actions.
Duty of Confidentiality:
Protecting sensitive, nonpublic information shared by the client.
Duty of Obedience/Disclosure:
Ensuring compliance with all laws, policies, and client restrictions, and fully disclosing relevant information, such as informing a client of a potential conflict of interest.