What is a fiduciary?

There are many different definitions of the term fiduciary—a legal definition, and regulatory definition, a dictionary definition and a layman’s definition. We think the best definition is as follows: “A financial advisor held to a fiduciary standard occupies a position of special trust and confidence. As a fiduciary, the advisor is required to act with undivided loyalty to the client. This includes disclosure of how the advisor is to be compensated and any corresponding conflicts of interest.” In short, it means putting the client’s interest first and doing what’s best for him or her.