What are the basic fiduciary principles that a fiduciary must comply with?

Fiduciaries hold a position of trust and responsibility, and their actions and decisions must adhere to specific fundamental principles to ensure they act in the best interests of their clients or beneficiaries.

The duty of undivided loyalty to the trust customer means that a fiduciary must prioritize the interests of the client or beneficiary above their own, avoiding conflicts of interest and ensuring that their actions are aligned with the client’s best interests. This principle is critical as it underscores the trust that clients place in fiduciaries when they entrust them with their assets or decision-making.

The duty to exercise prudence refers to the obligation of fiduciaries to act with care and caution in managing the assets or affairs of their clients. A fiduciary must employ sound judgment, be properly informed, and make decisions based on rational, well-considered analysis. This principle is vital for protecting the assets and interests of the beneficiaries.

Equitable treatment of all beneficiaries ensures that all parties with a vested interest in the trust or fiduciary relationship are treated fairly. This principle is particularly important in cases where multiple beneficiaries exist, as it aims to prevent favoritism or discrimination and fosters fairness in the fiduciary's handling of the trust’s affairs.

Together, these principles form a comprehensive framework that guides