Which of the following is NOT a characteristic of a fiduciary duty?

Charging clients based on commission incentives is not a characteristic of a fiduciary duty. In a fiduciary relationship, the adviser is legally and ethically obligated to act in the best interests of the client, prioritizing the client’s needs and welfare above their own financial interests. This often means that a fiduciary should avoid compensation structures that could create potential conflicts of interest, such as commission-based incentives, which may incentivize the adviser to recommend certain products or services that may not be in the best interest of the client.

The other listed characteristics—prioritizing client interests over personal gain, providing clients with accurate information, and acting transparently and honestly—are all essential aspects of fiduciary duty. These principles are designed to build trust and ensure that advisers provide unbiased, clear advice tailored to their clients' needs. Adhering to these tenets helps maintain the integrity of the adviser-client relationship, reinforcing the fiduciary's commitment to acting in the client's best interests.