Fiduciary

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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 ?
This recent holding has already been the source of vigorous commentary, and many agree that, rhetoric notwithstanding, the good faith obligation for fiduciaries retains bite, even if it seems to be subsumed under the larger rubric of the duty of loyalty.
The Employee Retirement Income Security Act of 1974 (ERISA) is the milestone legislation which governs employee retirement plans and specifically defines the duties and responsibilities of fiduciaries.
There are two types of plan fiduciaries: Named fiduciaries are designated as such in the plan document; functional fiduciaries take on fiduciary status because of their actions.
It is designed to ensure prudent investment practices for the more than five million fiduciaries in the U.
Often plan fiduciaries who do not purchase fiduciary liability insurance feel the exposure is covered elsewhere in their insurance portfolio.
Thus, although the Federal Reserve might have attempted to force the court-appointed fiduciaries to sell BCCI's interest in CCAH, the fiduciaries would have first had to secure possession and title to the shares.
It underscores the fact that fiduciaries are often vested with power over property owned by the beneficiary.
With substantiated Practices as the foundation, fi360 offers world-class fiduciary Training/Education, Tools and Resources that are essential for fiduciaries and those who provide services to fiduciaries to effectively and successfully manage their roles and responsibilities.
Plan sponsors and other fiduciaries should keep in mind that correction under VFC is helpful in guarding against adverse DOL action and is extremely valuable in defending against suits by participants, because a "no action" letter would serve as powerful evidence that there are no damages or--at the very least--the damages have been significantly mitigated.
CPAs in public practice are generally held by the courts to be fiduciaries, when they are acting in their frequent capacity as clients' trusted advisers.
Prudent Investment Practices--A Handbook for Investment Fiduciaries.