What role does transparency play in fulfilling fiduciary duties?

Transparency is a crucial element in fulfilling fiduciary duties as it fosters trust and understanding between investment professionals and their clients. By ensuring that clients are fully informed about the risks and costs associated with investment strategies, transparency empowers them to make sound decisions that align with their financial goals and risk tolerance. When clients are aware of the potential risks and the costs they may incur, they can engage more meaningfully in their investment journey and develop realistic expectations regarding performance and outcomes. This active involvement serves to enhance the overall client-advisor relationship, ultimately benefiting both parties by creating a framework of accountability and trust.