WHAT IS A FIDUCIARY?
A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties. Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for example, a corporate trust company or a financial advisor, acts in a fiduciary capacity to another party, who, for example, has entrusted funds to the fiduciary for safekeeping or investment. Likewise, asset managers-including managers of pension plans, endowments, and other tax-exempt assets-are considered fiduciaries under applicable statutes and laws. In a fiduciary relationship, one person-in a position of vulnerability justifiably vests confidence, good faith, reliance, and trust in another, whose aid, advice, or protection is sought. In such a relationship, good conscience requires the fiduciary to act at all times for the sole benefit and interest of the vulnerable.