Definition
A fiduciary is legally required to act in the best interest of another party, putting that party's interests ahead of their own. Investment advisors registered with the SEC are fiduciaries. Brokers traditionally operated under a lower 'suitability' standard, though regulations have increased their obligations.
Example
Your fee-only financial advisor is a fiduciary, legally required to recommend investments that benefit you, not generate commissions.
FAQ
What is Fiduciary?
A person or entity legally obligated to act in another's best interest.
Why is Fiduciary important?
Fiduciary helps investors evaluate regulatory and make more informed decisions.