What is one of the primary responsibilities of a fiduciary?

One of the primary responsibilities of a fiduciary is to act in the best interest of the principal. This duty, known as the fiduciary duty, obligates the fiduciary to prioritize the interests of the principal above their own. This encompasses a range of responsibilities, such as making prudent investment decisions, managing assets responsibly, and communicating transparently with the principal. The fiduciary is required to exercise a high standard of care, loyalty, and good faith, ensuring that all actions taken are aligned with the best interests of those they serve.

In the context of fiduciary relationships, prioritizing the interests of the principal ensures that decisions are made based on what is most beneficial for them, rather than for the fiduciary's personal gain or outside influences. This concept is fundamental to trust and fiduciary law and is essential in building a foundation of trust between the fiduciary and the principal.