Does being a fiduciary have a legal definition of...

Yes, being a fiduciary does have a legal definition of accountability. This means that fiduciaries are held to a high standard of care and loyalty in their dealings with the person or entity they represent (the beneficiary).

However, it's important to understand that not all individuals or entities working in financial services are automatically considered fiduciaries.

Here's a breakdown of who can be a fiduciary and their accountability:

• Individuals: Certain individuals can hold fiduciary credentials and be legally bound to act in their client's best interest. Some examples include:

  • Registered investment advisors (RIAs): RIAs are financial advisors who are fiduciaries by law. They are required to act in the best interests of their clients and put their clients' needs before their own.
  • Attorneys: Lawyers have a fiduciary duty to their clients, which means they must act in their clients' best interests and keep their information confidential.
  • Executors and trustees: These individuals are responsible for managing the assets of a deceased person or trust according to the terms of a will or trust document. They have a fiduciary duty to the beneficiaries of the estate or trust.

• Banks and brokerages: In general, banks and brokerages themselves are not fiduciaries to their customers. However, individual financial advisors working within these institutions may be held to a fiduciary standard depending on their specific role and the agreements they have with their clients. It's crucial to inquire directly with the advisor about their fiduciary status and the specific obligations they have towards you.

Remember, it's always advisable to ask any financial professional you work with whether they are a fiduciary and to understand the scope of their obligations towards you before entering into any financial agreements.