Governance
Fiduciary
A fiduciary is a person or entity legally obliged to act in another party's interests ahead of their own. The duty typically comprises loyalty (no unmanaged conflicts, no secret profit) and care (competence and diligence). Trustees, executors and discretionary investment managers commonly hold fiduciary duties.
Why it matters
The distinction that matters in practice is between a fiduciary standard and a suitability standard. A suitability standard asks whether a recommendation was appropriate; a fiduciary standard asks whether it was the best available option for that client. The difference usually surfaces in how the adviser is paid.
— Growth Capital Advisory Team
Also known as
fiduciary duty · fiduciary standard
Reference
Where this fits
Growth Capital publishes jurisdiction-by-jurisdiction analysis of what applies when residence changes — covering the UK, United States, Canada, Australia and the UAE.
Read the analysisDisclaimer. This definition is provided for general reference and does not constitute tax, legal, or financial advice. Rules and thresholds change, and individual circumstances vary significantly. Consult a qualified adviser before acting on it.