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 ?
Fiduciary law facilitates a purposefully expansive understanding of the obligations existing between parties that is consistent with the importance of their interaction and transcends strict, common law limits.
Understanding the fiduciary concept, then, requires looking to the broad postulates that give it substance and the principles of equity from which they are derived.
The fiduciary concept's foundation in broad and equitable notions of justice and conscience creates difficulty in defining "things fiduciary" with any degree of precision.
One of the primary ways in which the continued importance of equity is expressed in contemporary law is through the fiduciary concept.
These "distorted incentives" are neutralized by the insertion of fiduciary principles that remove self-interest from its consideration.
It has often been suggested that fiduciary law exists to protect vulnerable beneficiaries from exploitation by their fiduciaries.
While fiduciary norms furnish beneficiaries who entrust others within fiduciary interactions with the means to protect or abuse their interests, the fiduciaries entrusted by the beneficiaries are furnished with significant disincentives to abuse that trust.
These correlative (37) fiduciary duties and benefits exist because of the fiduciary concept's broader goal of preserving the integrity of the relationships in which these individuals participate (rather than protecting the individuals' rights).
Fiduciary law protects important social and economic interactions of high trust and confidence that create an implicit dependency and peculiar vulnerability of beneficiaries to their fiduciaries.
Further, with respect to recommendations concerning the selection of other persons to provide investment advice or investment management services, the DOL has clarified that the fiduciary advice definition is not intended to include marketing-related statements that an advisor might make when promoting its own services.
In response to commentators, the final rule provides that advice as to the purchase of health, disability, term life insurance and similar life insurance policies without an investment component will not constitute fiduciary investment advice.
Attend the ThinkAdvisor/National Underwriter Company webinar on August 25, The DOL Fiduciary Rule: What Now?