Fiduciaries have key two duties when managing a beneficiary’s money: duty of care and duty of loyalty.

• Duty of Care. Under the duty of care, fiduciaries must make informed business decisions after reviewing available information with a critical eye. Financial advisors might fulfill this by analyzing comprehensive information about your financial life before making recommendations or plans. Directors of companies, on the other hand, might consult industry experts and maintain detailed records and best practices for the company.
• Duty of Loyalty. To abide by the duty of loyalty, fiduciaries must not have any undisclosed economic or personal conflict of interest. They cannot use their position to further their private interests. Fiduciary financial advisors might adhere to the duty of loyalty by disclosing any recommendations they’ll receive a commission on.

Source: https://www.forbes.com/advisor/investing/what-is-fiduciary-duty/

Definition of Fiduciary

The term “fiduciary” can be defined as an individual or entity that acts on behalf of someone or something else. In this role, the fiduciary must operate as if they are who they represent, in an effort to make decisions that are in their best interest. In many cases, there are laws that surround the role of a fiduciary.

Fiduciary is a good word to hear when you’re searching for a financial advisor. An advisor that calls themselves a fiduciary seeks to minimize conflicts of interest, be transparent and live up to the trust placed in them. More specifically, fiduciary financial advisors must:

• Put their clients’ best interests before their own, seeking the best prices and terms.
• Act in good faith and provide all relevant facts to clients.
• Avoid conflicts of interest and disclose any potential conflicts of interest to clients.
• Do their best to ensure the advice they provide is accurate and thorough.
• Avoid using a client’s assets to benefit themselves, such as purchasing securities for their own account before buying them for a client.

Source: https://smartasset.com/financial-advisor/what-is-fiduciary-financial-advisor