A fiduciary is a person or other entity that administers assets on behalf of another party. The fiduciary must exhibit proper diligence in the administration of the assets held, as well as obedience to the desires of the principal, and must regularly report on the status of the assets held. A fiduciary must act in the best interests of the principal, and cannot use its position to gain at the expense of the principal. People who are considered to act in a fiduciary capacity include members of a board of directors, executors, guardians, accountants, money managers, and bankers.