Groundlearn / Glossary / Fiduciary duty
Fiduciary duty
A CFA term, defined in plain English with the distinction examiners test.
What it means
The obligation to act in another party’s interest ahead of your own, with the care and loyalty that relationship demands.
The exam angle
Identify who the client actually is before applying it. For a pension, the duty runs to the beneficiaries, not to the company that hired you.
Where it appears in the syllabus
- Ethical & Professional StandardsCFA Level I · exam weight 10–15% · The Code, the seven Standards, and how examiners phrase violations.
- Ethical & Professional StandardsCFA Level III · exam weight 10–15% · The Standards plus the Asset Manager Code — which appears only at Level III.
Related terms
- Code of EthicsThe aspirational statement of how members and candidates should conduct themselves.
- Standards of Professional ConductThe seven enforceable standards covering professionalism, integrity of capital markets, duties to clients, duties to…
- SuitabilityThe requirement to judge an investment against the client’s objectives, constraints and circumstances before…
- CompositeAll portfolios managed to the same strategy or objective, grouped together for GIPS reporting.
- Diligence and reasonable basisThe requirement that any recommendation or action rest on adequate research and analysis that could be defended if…
- Fair dealingTreating all clients fairly when disseminating recommendations or taking investment action.
Educational content only. This is not financial, investment, legal or regulatory advice. Check the official curriculum for your own exam before relying on any definition here.
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