2-1 As a preliminary point, reference must be made to the fiduciary relationship between the broker and their principal. The broker is, of course, the agent of their principal and, necessarily, the broker’s duties to their principal are based on principles of agency law. The fiduciary nature of the relationship is considered in chapter 1.1 The basic premise is that the broker must act in their principal’s best interests at all times. The broker must avoid conflicts of interest and also inform their principal where any potential for conflict may arise. The broker must also not make a secret profit and must take care to organise their remuneration to ensure that they do not do so. Difficulties may arise where the remuneration structure is not expressly set out. This chapter addresses these issues.