Generally speaking, fiduciary duty refers to a relationship in which one party places special confidence and trust in the integrity and fidelity of the other party. As a result, a position of superiority or influence is created.

There are two parties in a fiduciary relationship, the fiduciary and the principal. The fiduciary is expected to be loyal to the person to whom the duty is owed (the principal).

In many jurisdictions, brokers owe this fiduciary duty to their securities customers. Examples of fiduciary duty include the duty to put the client’s interests before that of the broker or firm and the duty to monitor market changes.

If you believe that your broker has breached this fiduciary duty, contact our office. You may have a stockbroker misconduct claim.