In an agency relationship, the agent is considered a fiduciary because they owe duties of:

In an agency relationship, the agent is considered a fiduciary because they owe the principal duties of trust and loyalty. This fiduciary duty implies that the agent must act in the best interest of the principal, maintaining a high level of integrity and putting the principal's interests above their own. The relationship is built on trust, requiring the agent to act honestly and competently while avoiding any conflicts of interest.

Trust emphasizes the need for the agent to be reliable, ensuring that the principal can depend on their actions and advice. Loyalty reinforces the idea that the agent must prioritize the welfare of the principal, disclosing any potential conflicts and avoiding self-dealing. This commitment to trust and loyalty is foundational in establishing the agent’s responsibilities, which is why this answer is the correct one.

In contrast, the other options suggest characteristics that do not embody the essence of fiduciary duty. Neglect and indifference are contrary to the active support and engagement expected from an agent. Competence and authority touch on the agent's skills and the legal power to act but do not fully capture the specific fiduciary obligations of trust and loyalty. Independence and secrecy imply a level of detachment and concealed behaviors, which is not aligned with the transparency required in a fiduciary relationship.