Final answer:
The risks associated with a fiduciary's duty of undivided loyalty generally stem from engaging in self-dealing or other conflict of interest transactions. Ignoring clients' requests or failing to perform annual reviews can also pose risks. Failure to comply with the governing document may be seen as a breach of duty (a).
Step-by-step explanation:
The risks associated with a fiduciary's duty of undivided loyalty generally stem from engaging in self-dealing or other conflict of interest transactions. This means that a fiduciary should avoid situations where they have a personal interest that could conflict with the best interests of their clients. Ignoring clients' requests or failing to perform annual reviews can also pose risks by potentially neglecting the clients' needs and not providing necessary updates or adjustments.
A fiduciary's duty of undivided loyalty is rooted in the moral commitment to act in the best interests of their clients, and any failure to comply with the governing document can be seen as a breach of this duty. By not adhering to the rules and guidelines set forth in the governing document, a fiduciary may expose themselves and their clients to unnecessary risks.