A fiduciary relationship is a relationship of trust and confidence in which one party (the fiduciary) must act in the best interest of another (the principal).

• Requires utmost good faith
• Fiduciary must put the principal’s interests above their own
• Common in agency relationships
• Imposes higher legal and ethical duties

• Obedience – follow lawful instructions
• Loyalty – act solely in the client’s interest
• Disclosure – reveal all material facts
• Confidentiality – protect client information
• Accounting – properly handle funds
• Reasonable Care and Diligence – act competently

• Broker → client
• Agent → principal
• Trustee → beneficiary
• Attorney → client

• Failing to disclose material facts
• Self-dealing
• Commingling trust funds
• Acting beyond authority

• Fiduciary duties continue after the transaction for confidentiality
• Violation can result in license discipline and civil liability