In April 2016, the Department of Labor released its “Fiduciary Rule” to the public. Though the rule was formally vacated by the Fifth Circuit Court of Appeals in 2018, consumers’ awareness of the term fiduciary remained.
By definition, a fiduciary is an individual or organization that takes on the responsibility of acting on behalf of another person or entity. They are duty-bound to act with the utmost honesty and integrity in any matters of law and/or finance. Attorneys and Certified Public Accountants (CPAs), for example, are fiduciaries. They must always act in the best interest of their customers and clients, and if they do not, they are legally liable for any damages that occur.