A fiduciary of a trust organization is prohibited from engaging in which of the following activities?

A fiduciary of a trust organization is prohibited from engaging in self-dealing. This principle is central to fiduciary duty, which requires fiduciaries to act in the best interest of the beneficiaries they are serving. Self-dealing occurs when a fiduciary takes actions that benefit themselves personally rather than prioritizing the interests of the beneficiaries. This behavior can lead to conflicts of interest and undermine the trust placed in the fiduciary to manage the assets responsibly and ethically.

Engaging in self-dealing could result in significant legal and financial repercussions for the fiduciary, including potential removal from their position, liability for losses suffered by the trust, and other legal consequences. Therefore, the prohibition against self-dealing is a safeguard designed to maintain the integrity of trust management and ensure that the fiduciary acts solely for the benefit of the trust and its beneficiaries.

Investment management, providing legal advice, and asset appraisal are activities that fiduciaries can undertake, typically within a framework of regulatory compliance and professional standards, as long as they do not involve self-dealing or any conflict of interest.