What is a Fiduciary?

A fiduciary is a person or organization that owes to another the duties of good faith and trust. The highest legal duty of one party to another, it also involves being bound ethically to act in the other’s best interests.

When a party knowingly accepts a fiduciary duty, on behalf of another party, he or she is required to act in the best interest of the principal, the party whose assets they are managing. The fiduciary manages the assets exclusively for the benefit of their client.