Tuesday, August 3, 2021

(When) advisers** act as fiduciaries

One issue that arises fairly regularly for advisers is whether they will act in fiduciary roles for their clients, for example, as trustees or executors of a will or as an attorney under some form of enduring power of attorney document.

At law, there is no reason that an adviser is automatically prohibited from accepting this type of role.

There are however a number of rules that need to be understood and complied with, not least of which the duty to avoid a conflict of interest.

Practically however, many financial and risk advisers are prohibited from taking on these roles, unless they are able to obtain the prior written consent of their licensee.

** for the trainspotters, the title today is riffed from the Bob Dylan song ‘Queen Jane Approximately’. Listen hear (sic):