Fiduciary


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.

Fiduciary

One who must act for the benefit of another party.

Fiduciary

1. A person appointed to handle another person's finances. A fiduciary holds the assets of another person and is required to act in the best interests of that person; he/she is not allowed to invest for personal profit. See also: Prudent person rule.

2. Describing a duty or obligation to act in the best interest of another person or institution. For example, an elected government might state that it has a fiduciary duty to wisely use the taxes it collects.

3. An unsecured loan.

fiduciary

A person, such as an investment manager or the executor of an estate, or an organization, such as a bank, entrusted with the property of another party and in whose best interests the fiduciary is expected to act when holding, investing, or otherwise using that party's property.

Fiduciary.

A fiduciary is an individual or organization legally responsible for managing assets on behalf of someone else, usually called the beneficiary. The assets must be managed in the best interests of the beneficiary, not for the personal gain of the fiduciary.

However, the concept of acting responsibly can be broadly interpreted, and may mean preserving principal to some fiduciaries and producing reasonable growth to others.

Executors, trustees, guardians, and agents with powers of attorney are examples of individuals with fiduciary responsibility. Firms known as registered investment advisers (RIAs) are also fiduciaries.

fiduciary

A person who enjoys a relationship of trust or confidence with respect to another such that the law will impose greater than normal responsibilities on the fiduciary for honesty, integrity,candor,and scrupulous good faith even if it means sacrificing the interests of the fiduciary. Typical fiduciaries include attorneys, real estate agents representing principals, trustees, and guardians. Because of the fiduciary relationship between an agent and principal, it is difficult to understand the concept of dual agency, in which the broker may represent both the buyer and seller.A seller's fiduciary must keep all the client's information confidential,not volunteer anything unless absolutely required by law, and attempt to gain the highest possible price for the property. A buyer's fiduciary must ferret out all secrets, volunteer all information regarding anything at all that might affect property values, recommend the most thorough home inspectors, and attempt to obtain the lowest possible price for a property. These positions are extremely difficult to reconcile in one person.

Fiduciary

One who acts for an estate or trust to manage the property of the estate or trust.
References in periodicals archive ?
The PV tentatively proposes that the recognition of individual claims take place when an event has occurred that compels the government to disburse fiduciary resources and no further action is required by the beneficiary, and no additional condition has to be met, for the beneficiary to be entitled to receive the resources.
As a result, the fiduciary model suffers a kind of Goldilocks problem.
Part I elaborates the fiduciary theory of government.
Surprisingly, given their importance, we know relatively little about the justification for fiduciary duties.
Claims that have been made about the justification for fiduciary duties reflect two analytical strategies.
Why do plaintiffs' lawyers allege fiduciary breaches when they can more easily prove plain old negligence?
A debate continues to rage, 2 years after the passage of the Dodd-Frank Wall Street Reform Act, as to whether securities brokers always owe fiduciary duties to their customers.
In addition to a duty of loyalty, a fiduciary also owes a duty of care to carry out its responsibilities in an informed and considered manner and to act as an ordinary prudent person would act in the management of his or her own affairs.
Tess Ferrera, member of the Employee Benefits and ERISA and Fiduciary Litigation practice groups at law firm Miller & Chevalier Chartered
No company, director, or fiduciary can completely avoid the risk of legal action, but directors can take steps to mitigate their companies' fiduciary risk in several ways, including:
Part IV countenances some objections to the proposal from within the fiduciary concept.