Fiduciary Responsibility: A Fiduciary is a person who is in a position of trust and confidence, owing certain duties to the principal, a.k.a. the party being represented, a.k.a. the client. These duties include:
1) Undivided Loyalty -- prohibits Agent from advancing any
interest adverse to the principal’s interest.
2) Obedience -- requires Agent to be subject to principal’s continual control and to obtain & follow all lawful instructions from the principal, and prohibits Agent from exceeding the scope of authority granted by the principal.
3) Confidentiality -- requires Agent not to knowingly reveal confidential information of the principal or use this information to the advantage of the Agent or a third party, during or after the termination of an agency relationship, except when:
a) disclosure is made with the consent of the principal;
b) disclosure is made to another licensee or third party acting solely on the principal’s behalf;
c) disclosure is made under subpoena or court order;
d) disclosure is made with the belief that it necessary to prevent a crime by the principal; and/or when
e) disclosure is made in the process of defending the Agent in a legal proceeding against an accusation of wrongful conduct.
4) Reasonable Care -- requires Agent to protect client from
foreseen risks of harm that are beyond the scope of the Agent’s expertise,
thus advising principal to seek expert advice.
5) Full Disclosure -- requires Agent to disclose to principal all information which might affect the principal’s best interest.
6) Accountability -- requires Agent to promptly report all money & property received and paid out, and upon request, provide an accounting to the principal.