Fiduciary

(The weekly series - Pocket Money - where I explain financial basics in fewer than 200 words. Feel free to make suggestions!)

A fiduciary is a person or organisation with a legal and ethical duty to act in someone else’s best interests rather than their own.

In finance this could apply to financial advisors, fund managers, trustees and solicitors (amongst many other roles). Not all fiduciaries are formally appointed - some roles are fiduciary by nature

It means that they must put the client’s interests first, taking time to ascertain them, for example the client’s goals and risk tolerance. They must act with care, consideration, honesty and transparency in all matters including fees and commissions and they must avoid conflicts of interest. 

If somebody is working in a fiduciary capacity, they have a legal obligation to put your interests first.

Love Eleanor. xxx