According to California's code of ethics, what must fiduciaries avoid?

Fiduciaries are bound by a strict code of ethics that emphasizes the importance of maintaining the trust placed in them by their clients. This includes the necessity to avoid activities that could present a conflict of interest. A conflict of interest occurs when a fiduciary's personal interests or relationships may interfere with their obligation to act in the best interest of their clients. This safeguard is crucial to ensure that fiduciaries remain impartial and prioritize the well-being and goals of their clients without being swayed by external influences or personal gain.

In contrast, engaging in activities with no commercial value does not inherently impact the fiduciary's ability to perform their duties effectively. While personal relationships can complicate fiduciary duties, avoiding all relationships is not a practical expectation of fiduciaries. Additionally, providing advice outside their expertise can certainly be unwise, but it doesn't directly relate to the overarching principle of maintaining objectivity and loyalty to the client as avoiding conflicts of interest does. Thus, the emphasis on avoiding conflicts of interest aligns closely with the ethical obligations fiduciaries are required to uphold in California.