Fiduciary Risk

Fiduciary Risk

The risk that an agent handling funds on behalf of a principal will not live up to his/her full fiduciary responsibility. That is, fiduciary risk is the possibility that an agent will not act in the client's best interest. This does not necessarily include foul play or fraud. It could simply mean that the agent is not handling the client's funds in the best possible way.
References in periodicals archive ?
Their home office likes these models: They give it greater control over investment processes, helping it boost the portfolio's performance, retain client assets and lower its own fiduciary risk. For advisers, offloading investment management responsibility frees them up to strengthen customer relationships and grow their business.
The consortium-lead will be responsible for the overall governance of the consortium, including financial management capacity and how the consortium manages and mitigates risks, including fiduciary risk, and safeguards and protects vulnerable people.
In its Fiduciary risk report on matters raised by Auditor-General Edward Ouko concerning public financial management by devolved governments for the 2012/13 to 2015/16 financial years, the committee noted irregularities in pay and allowances for ward representatives.
"And others believe that, if the employer pays administrative fees, it will help minimize their fiduciary risk."
In addition, she has held several firm-wide roles including serving as a member of JP Morgan Chase & Co.'s executive committee, member of the management committee for JPMorgan Chase Bank, co-chair of the Fiduciary Risk Committee, director of the JPMorgan Chase Foundation, and executive sponsor of the firm's women's network.
Through its retirement division, Spectra provides 401(k) retirement services, fiduciary risk management services, investment due diligence, plan and compliance review, provider services and benchmarking and wealth management.
The Treasury department suggests that one barrier to employers building annuitization options into retirement plans may be a fear that the employer could face fiduciary risk if the annuity provider failed.
Andrew Graham, previously Chief Risk Officer and Head of Fiduciary Risk at Butterfield Bank Limited, has been named Group Chief Risk Officer, and the Bank's Risk Management function becomes part of the Finance division, reporting to Group Chief Financial Officer Michael Schrum.
When asked why they had not adopted a solution, 81 percent cited fiduciary risk as a very or extremely important barrier, while two-thirds cited cost.
helps employers provide the best retirement plan to their employees, while minimizing fiduciary risk. Since 1994, we have been offering in-depth, un-conflicted advice on every aspect of retirement plan management, and serve companies of all sizes in a variety of industries in the Midwest and Southern United States with over 100,000 combined employees and more than $2.5 billion in assets.
If the conflict of interest rule in the Department of Labor's proposed fiduciary regulations is implemented as now drafted, in-house broker-dealers of life insurers face the highest level of fiduciary risk among all advisor channels.