Finance glossary
Fiduciary
Definition
A person legally bound to act in a client best interest.
A fiduciary has a legal and ethical duty to put a client interests ahead of their own, a higher standard than mere suitability. Registered investment advisors are fiduciaries, while some brokers are not, which is why investors are urged to ask whether their advisor is one.
In a sentence
She chose a fiduciary advisor, legally bound to put her interests ahead of his own commissions.
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