In what scenario would a licensee be considered to have a fiduciary duty?

A licensee is considered to have a fiduciary duty when they are responsible for managing someone else's funds. This responsibility creates a legal and ethical obligation to act in the best interest of the other party. In this scenario, the licensee must prioritize the client's interests and exercise a high level of care and loyalty when handling those funds. This duty is particularly crucial in financial and insurance settings where trust is paramount.

The other scenarios presented do not inherently establish a fiduciary relationship. Representing the interests of a corporate entity reflects an agency relationship rather than a fiduciary duty. Competing for business signifies a professional relationship focused on obtaining clients, which does not demand the same level of trust and loyalty as managing funds. Offering financial advice without obligation typically does not require a fiduciary standard since there’s no formal duty to act in the other party's best interest without a direct agreement or expectation of trust.