What must fiduciaries do when they face potential conflicts of interest?

When fiduciaries face potential conflicts of interest, it is essential for them to disclose these conflicts to all parties involved. This transparency is crucial because fiduciaries have a duty to act in the best interests of their clients, and failure to disclose conflicts can undermine trust and lead to ethical violations.

By disclosing any potential conflicts, fiduciaries enable clients to make informed decisions regarding their engagements. This practice not only upholds the integrity of the fiduciary relationship but also aligns with the legal and ethical standards that govern fiduciary duties. It ensures that clients are aware of any interests that might influence decision-making, allowing them to assess the situation fully and possibly decide how to proceed.

Overall, the act of disclosure helps to maintain accountability, which is a cornerstone of fiduciary responsibility. It protects both the fiduciary and the client by fostering an environment of trust and clarity.