Understanding Fiduciary Accountants, Services, and 2026 SEBI Rules

A fiduciary is an individual or organisation legally obligated to act in the best interests of their client or beneficiary. In financial and legal contexts, fiduciaries have a duty to prioritise their client’s needs above their own, ensuring transparency, trust, and ethical conduct.

Why fiduciaries matter

Fiduciaries are essential in finance and law because they bridge the trust gap between service providers and clients. By avoiding conflicts of interest and focusing solely on client welfare, fiduciaries foster confidence in wealth management, estate planning, and other financial decisions.

Fiduciary responsibilities

Key fiduciary responsibilities include:

• Acting in the client’s best interest at all times.
• Ensuring clear communication and transparency about fees, risks, and processes.
• Avoiding conflicts of interest, such as promoting products for personal gain.

Examples of fiduciaries in India

In India, fiduciaries can include:

• Financial advisors: Professionals who offer investment advice tailored to individual goals.
• Trustees: Individuals or organisations managing assets on behalf of beneficiaries.
• Fiduciary accountants: Experts who oversee financial records, tax compliance, and wealth management strategies.

Fiduciary services encompass a wide range of offerings designed to help individuals and businesses manage their finances and assets ethically and efficiently.

Key fiduciary services in India

1. Wealth management: Fiduciaries assist in optimising investment portfolios, ensuring compliance with SEBI regulations, and providing personalised advice.
2. Estate planning: They help clients structure their assets for smooth inheritance and succession planning.
3. Investment advice: Fiduciaries evaluate market opportunities and risks, recommending strategies that align with client objectives.
4. Business succession planning: For business owners, fiduciaries provide guidance on transferring leadership and assets to the next generation.
5. Trustee services: Fiduciaries manage trusts, ensuring that funds are distributed as intended and protected from misuse.

Post-acquisition assistance

Fiduciaries also play a vital role after clients acquire financial products or assets. They help with:

• Managing loans.
• Tracking investments securely.
• Ensuring compliance with SEBI and RBI regulations.

By offering these services, fiduciaries safeguard investments and provide peace of mind to clients.

Selecting the right fiduciary service provider is crucial to ensure your financial well-being and compliance with regulations. Here is a step-by-step guide to help you make an informed decision:

Checklist for choosing a fiduciary service provider

1. Verify SEBI registration: Ensure the provider is registered with SEBI, which guarantees adherence to investor protection rules.
2. Review past client experiences: Look for testimonials or reviews to understand the provider’s track record.
3. Assess qualifications: Check credentials, certifications, and professional expertise.
4. Ensure fee transparency: Confirm that the provider is upfront about all costs and charges.

Identifying trustworthy fiduciaries

Trustworthy fiduciaries exhibit the following traits:

• Openness about fees: They clearly disclose all charges, avoiding hidden costs.
• Acting in clients’ sole interests: Fiduciaries prioritise client welfare over personal gain.
• Regulatory compliance: They follow SEBI and RBI guidelines strictly.

Pro-tip: Importance of SEBI-registered providers

Under the new SEBI regulations set to take effect in 2026, fiduciary service providers must enhance transparency and compliance. Choosing a SEBI-registered provider ensures your investments are managed ethically and securely, fostering trust and confidence.