When someone is endowed with fiduciary responsibilities then they are responsible for another individual’s money and potentially investing those monetary funds. Fiduciary liability can occur for many reasons, for example if investment advice provided by a broker caused inappropriate loss based on what an individual asked for, the broker may be held responsible.
When an individual decides to invest their money, whether in a bank, stock market, retirement plan, etc., they entrust it to an individual who must abide by legal responsibilities and duties, which are considered good faith and candor. Additionally, these responsibilities are also known as fiduciary duty.