Verified
Fiduciary comes from Latin, meaning holding in trust. From a legal standpoint, this is one of the strictest standards of care imposed on relationships. The agent has to act in good faith and in the best interests of the principal. It requires that the agent:
a. Avoid conflicts of interest, where personal interests conflict with the best interests of the principal.
b. Disclose anything that may be relevant to the principal’s interests.
c. Not personally profit from information or opportunities as a result of the agency relationship.
d. Not compete with the principal. A fiduciary duty may be displaced by the agent’s specific instructions.