Fiduciary duty
Certified Financial Planner glossary · Certified Financial Planner
Definition
The obligation to act in the client’s best interest, comprising loyalty, care, and following client instructions.
Fiduciary duty in plain English
Two answers both "work" mathematically: one quietly favors the firm's shelf, the other is cleaner for the client. Fiduciary duty is the obligation to act in the client's best interest, built from loyalty, care, and following the client's reasonable and lawful instructions. Loyalty blocks self-dealing and product push. Care demands competence and diligence. Following instructions respects an informed adult's lawful goals after disclosure. Stuck between a defensible product and a client-first alternative? The fiduciary frame breaks the tie toward the client.
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