Which statement best defines a fiduciary?

• A. A person legally appointed and authorized to hold assets in trust for another person
• B. A person who executes trades for clients
• C. An employee who manages marketing
• D. A person who audits accounts

Answer: (A)

A fiduciary is someone who has a legal obligation to act in another person’s best interests, typically by holding assets in trust and managing them on that person’s behalf. The phrase “legally appointed and authorized to hold assets in trust for another person” captures this formal duty to manage someone else’s property with loyalty and care.

So, this description best defines a fiduciary because it emphasizes the trust and legal responsibility to steward someone else’s assets. In contrast, simply executing trades for clients is a broker’s service and does not by itself establish a fiduciary relationship; marketing duties involve no handling of someone else’s assets; and auditing looks at records but does not entail holding or managing someone else’s assets in trust.