DEFINITION of 'Self-Dealing'
A situation in which a fiduciary acts in his own best interest in a transaction rather than in the best interest of his clients. A fiduciary is legally obligated to act in the best interest of his clients. If he breaches this obligation, the wronged party can sue the fiduciary for monetary damages.
BREAKING DOWN 'Self-Dealing'
Individuals who may be in the position of fiduciary include trustees, attorneys, corporate officers, board members and financial advisors. An example of self-dealing would be if a broker knowingly advised his clients to purchase products which would cause them harm, but would pay the broker a hefty commission.