Fiduciary

(redirected from Fiduciary obligation)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.
Related to Fiduciary obligation: fiduciary duty, Fiduciary relationship

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 ?
Later, in Hodgkinson, La Forest J reiterated that "a fiduciary obligation carries with it a duty of skill and competence" (supra note 25 at 405).
Though there are legal regimes, such as those pertaining to bribery, which affect members and how they do their job as members of parliament, the imposition of fiduciary obligation could have the effect of removing from the House the capacity to sanction members and generally to regulate its own internal affairs.
For the most part, this design is a transparent effort to change the rules of agency by removing most of the fiduciary obligations that make agents vulnerable yet, still allowing them to call themselves agents.
It's even more frustrating for Aboriginal leaders to see government lawyers, in an attempt to convince the Supreme Court that Quebec does not have the right within Canadian laws to leave Canada, say that Canada's fiduciary obligation to Aboriginal peoples is a thread that is strong enough to bind Quebec to Confederation.
The federal government, in a move that law professors all over the country say is a violation of its fiduciary obligation to protect Aboriginal rights, argued that such purchases should be subject to taxation, despite the provisions of Section 87 of the Indian Act.
Therefore, directors have a fiduciary obligation to the shareholders.
It addresses fiduciary obligation to clients, disclosure, accounting and reporting, protection of funds, contracts, employee education, compliance with laws and regulations, and equal opportunity.
CPAs' unique obligation to society is more specific than most: to be responsible for financial reporting to the public, which by law and society's expectation is a fiduciary obligation.
We have, however, a fiduciary obligation to protect the significant investment of hundreds of millions of dollars made by many institutional investors, including pension and retirement funds on behalf of their investors," said Peter Henkel, Coventry's President and Chief Executive Officer.
This is a conscious violation of [past] Supreme Court decisions and the fiduciary obligation of the government of Canada for Indian peoples.
This director has a fiduciary obligation to the shareholders and Goldman has the potential to be a shareholder," she added.
Within the general partnership, the General Partner has fiduciary obligation and potential personal liability.