Certified Trust and Fiduciary Advisor (CTFA) Practice Exam 2025 – All-in-One Guide to Exam Success!

The statement emphasizing that fiduciaries are held to a higher standard of care than non-fiduciaries is accurate because fiduciaries have a legal and ethical obligation to act in the best interests of their clients or beneficiaries. This heightened standard is often referred to as the "fiduciary standard," which requires fiduciaries to prioritize the interests of those they serve above their own. This includes being diligent, acting with loyalty, and exercising a level of care that goes beyond what is typically expected in non-fiduciary relationships.

In contrast, non-fiduciaries are not bound to such stringent standards and may prioritize their own interests or those of their organization without the same level of scrutiny. Thus, the expectation for fiduciaries to maintain transparency, provide full disclosure, and avoid conflicts of interest is fundamental to their role and responsibility.

Understanding this higher duty of care helps clarify the trustworthiness required of fiduciaries and highlights the importance of their commitment to their clients' welfare. This principle underpins many aspects of trust and fiduciary law, reinforcing the notion that fiduciaries must consistently act with integrity and in good faith.