Fiduciary Duty, Part 2: What Does the Fiduciary Duty Require?
While the term fiduciary duty sounds vague and complex, the fiduciary duty concept is actually a simple one comprised of a series of separate, distinct, and easy to understand obligations:
- The Duty of Undivided Loyalty
- The Duty of Trust
- The Duty of Utmost Good Faith
- The Duty of Honesty
- The Duty of Full and Complete Disclosure
- The Duty to Put Your Client’s Interests Above Your Own
- The Duty to Avoid Conflicts of Interest
- The Duty to Avoid Self-Dealing
While these Obligations sound simple, and sound as if they should always apply to honest people dealing with one another in everyday life, they are not typically required under the law. When a fiduciary relationship exists, however, these obligations are the law and must be rigorously followed.