When looking for a financial advisor, finding someone who is a fiduciary all the time, in every interaction with you, is very important. But what does it mean to be a fiduciary? Watch this short video to learn more.
What Is a Fiduciary?
A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients’ interest ahead of their own, with a duty to preserve good faith and trust. Being a fiduciary thus requires being bound both legally and ethically to act in the other’s best interests.
A fiduciary may be responsible for general well-being of another (e.g. a child’s legal guardian), but often the task involves finances—managing the assets of another person, or of a group of people, for example. Money managers, financial advisors, bankers, insurance agents, accountants, executors, board members, and corporate officers all have fiduciary responsibility.
Merrium Webster dictionary definition of fiduciary
Latin fidere, which means “to trust.”