Why are fiduciaries prohibited from self-dealing?

Fiduciaries are prohibited from self-dealing because they have a legal and ethical obligation to act in the best interest of the beneficiaries they serve. This principle is central to fiduciary duty, which requires that fiduciaries prioritize the interests of their clients or beneficiaries over their own personal gains. Engaging in self-dealing could create conflicts of interest, leading to actions that may not benefit the beneficiaries or could even harm them. The duty to act in the best interest ensures trust and integrity in relationships between fiduciaries and those they represent, reinforcing the fiduciaries' responsibility to avoid any activity that could compromise that trust. Therefore, the prohibition against self-dealing is vital for maintaining the integrity of fiduciary relationships and upholding the fiduciaries' obligations to their beneficiaries.