Fiduciary

(redirected from Fiduciary obligation)
Also found in: Dictionary, Thesaurus, 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 ?
If fiduciary obligations were thought to be grounded on public policy, it would not be surprising that the content of those duties might be disconnected from the relationship between the parties.
Given that the fiduciary obligation flows from the nature of Aboriginal title, there can be little doubt that specific fiduciary duties may arise in respect of title lands.
(87) In his Second Treatise of Civil Government, John Locke argued that the government has a fiduciary obligation to the people.
John D McCamus, "The Recent Expansion of Fiduciary Obligation: Common Themes and Future Developments" (1987) 23 ETR 301.
The Morgan Lewis paper acknowledges that fiduciary obligations require an advisor to have "a reasonable basis for its advice." The Morgan Lewis lawyers do not directly argue that the meager data collected by the robos is sufficient to form a reasonable basis.
FINN, FIDUCIARY OBLIGATIONS 4 (1977); DeMott, supra note 132, at 915 ("One could justifiably conclude that the law of fiduciary obligation is in significant respect atomistic."); Sealy, supra note 135, at 73 ("The word fiduciary...
Finn first introduced the concept in his seminal treatise Fiduciary Obligations, where he noted the close resemblance between fiduciaries and public officers.
(45) Therein, the Court ruled that: (a) vulnerability alone is insufficient to support a fiduciary claim; and (b) fiduciary obligations will not be imposed on a party purely on the basis that they have chosen to act in the best interests of another.
As previously discussed, the minimum level of knowledge required to attract liability as an accessory is actual knowledge of the facts which, to a reasonable person, would suggest a breach of trust or fiduciary obligation. It is unlikely that accessories would be considered to have acted reasonably by assisting in a breach with this level of knowledge.
Though framed in mandatory terms, this revised UK statutory fiduciary obligation echoes the statements of our Supreme Court in Peoples, (88) and earlier cases, such as Maple Leaf, (89) and is perhaps indicative of a trend towards the imposition of a duty of corporate social responsibility in the common law world.
Counsel to businesses take note: shareholders of closely held corporations have fiduciary obligations to each other greater than those in the world of publicly traded organizations.
loyalty or fiduciary obligation. When market forces can or do adequately