SIE practice questionmediumFiduciary Account Rules
Which statement is true about fiduciary accounts?
- AA fiduciary can use account funds for personal purposes
- BA fiduciary has no legal obligation to the beneficiary
- CA fiduciary must act in the best interests of the account owner✓ Correct answer
- DA fiduciary is always the account owner
Explanation
Why C — A fiduciary must act in the best interests of the account owner
A fiduciary is legally obligated to act in the beneficiary's best interests. They cannot use account assets for themselves and are not always the owner.
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