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One who must act for the benefit of another party.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.


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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.


One who acts for an estate or trust to manage the property of the estate or trust.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
This suggests that a contractual employment relationship that is not fiduciary can be made into a fiduciary relationship by simply adding in the 'peculiarly' fiduciary duties as contractual terms.
(74) The fiduciary relationship has trust at its core.
671, 706-13 (2013) (discussing the "Constitutional History and Political Theory" for considering politicians and the government as being in a fiduciary relationship with the people).
It is well established, as a general proposition, that a person who acquires special knowledge or information by virtue of a confidential or fiduciary relationship with another is not free to exploit that knowledge or information for his own personal benefit but must account to his principal for any profits derived therefrom.
This explains why compensation was awarded for a fiduciary's--a solicitor's-negligent misrepresentation in Nocton v Lord Ashburton 50 years before the development of the tort of negligent misstatement, outside a fiduciary relationship, in Hedley Byrne & Co.
(25) In light of those findings, the court declined to recognise a fiduciary relationship between plaintiff and the adviser defendant.
(154) While every fiduciary is subject to the duty of loyalty, its intensity varies in accordance to the circumstances establishing the fiduciary relationship. (155) Though different accounts have been offered to the duty of loyalty, the fact remains that none have prevailed.
examples of fiduciary relationships include attorney-client,
Fiduciary mandates of this sort implicate a conventional fiduciary relationship to which the fiduciary and beneficiary are parties.
They are not, however, obligated to do a close study and determine the coverages the insured needs but does not know enough to ask for, unless the agent or broker and the insured enter into a fiduciary relationship.
Defendant's theory at trial was that there never was an attorney-client or fiduciary relationship between the plaintiffs and Crawford with regard to plaintiffs' decision to loan money to WYM Tech.
fiduciary relationship is a legally recognized relationship in