Why must agents carefully manage their fiduciary duties?

Agents must carefully manage their fiduciary duties primarily to minimize potential legal liability and uphold trust. Fiduciary duties are based on the obligation to act in the best interests of the principal, which involves loyalty, confidentiality, full disclosure, and obedience to lawful instructions. When agents prioritize these duties, they help instill trust and confidence in the relationship with their clients.

If agents fail to manage these responsibilities appropriately, they risk breaching their fiduciary duties, which can lead to legal repercussions, including lawsuits and loss of reputation. By maintaining a strong commitment to their fiduciary responsibilities, agents can protect both their professional standing and their clients’ interests, fostering long-term relationships and a successful practice.