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
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.