fiduciary

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Related to fiduciary duty: Fiduciary Responsibility

Fiduciary

An individual in whom another has placed the utmost trust and confidence to manage and protect property or money. The relationship wherein one person has an obligation to act for another's benefit.

A fiduciary relationship encompasses the idea of faith and confidence and is generally established only when the confidence given by one person is actually accepted by the other person. Mere respect for another individual's judgment or general trust in his or her character is ordinarily insufficient for the creation of a fiduciary relationship. The duties of a fiduciary include loyalty and reasonable care of the assets within custody. All of the fiduciary's actions are performed for the advantage of the beneficiary.

Courts have neither defined the particular circumstances of fiduciary relationships nor set any limitations on circumstances from which such an alliance may arise. Certain relationships are, however, universally regarded as fiduciary. The term embraces legal relationships such as those between attorney and client, Broker and principal, principal and agent, trustee and beneficiary, and executors or administrators and the heirs of a decedent's estate.

A fiduciary relationship extends to every possible case in which one side places confidence in the other and such confidence is accepted; this causes dependence by the one individual and influence by the other. Blood relation alone does not automatically bring about a fiduciary relationship. A fiduciary relationship does not necessarily arise between parents and children or brothers and sisters.

The courts stringently examine transactions between people involved in fiduciary relationships toward one another. Particular scrutiny is placed upon any transaction by which a dominant individual obtains any advantage or profit at the expense of the party under his or her influence. Such transaction, in which Undue Influence of the fiduciary can be established, is void.

fiduciary

1) n. from the Latin fiducia, meaning "trust," a person (or a business like a bank or stock brokerage) who has the power and obligation to act for another (often called the beneficiary) under circumstances which require total trust, good faith and honesty. The most common is a trustee of a trust, but fiduciaries can include business advisers, attorneys, guardians, administrators of estates, real estate agents, bankers, stock brokers, title companies, or anyone who undertakes to assist someone who places complete confidence and trust in that person or company. Characteristically, the fiduciary has greater knowledge and expertise about the matters being handled. A fiduciary is held to a standard of conduct and trust above that of a stranger or of a casual business person. He/she/it must avoid "self-dealing" or "conflicts of interests" in which the potential benefit to the fiduciary is in conflict with what is best for the person who trusts him/her/it. For example, a stockbroker must consider the best investment for the client, and not buy or sell on the basis of what brings him/her the highest commission. While a fiduciary and the beneficiary may join together in a business venture or a purchase of property, the best interest of the beneficiary must be primary, and absolute candor is required of the fiduciary. 2) adj. defining a situation or relationship in which a person is acting as a fiduciary for another. (See: trust, fiduciary relationship)

fiduciary

adjective commanding belief, commanddng confidence, confidential, deserving belief, fiducial, founded in confidence, reliable, sound, trusted, worthy of belief, worthy of credence
Associated concepts: fiduciary bequest, fiduciary bond, fiduuiary capacity, fiduciary relation

fiduciary

noun agent, caretaker, custodian, guardian, one who handles property for another, one who transacts business for another, person entrusted with property of another, trustee
Associated concepts: escrow, trust
See also: executor, pecuniary, trustee
References in periodicals archive ?
(37) It is not surprising to me that the duty of care and skill that is presumptively owed by every fiduciary has been called a fiduciary duty in the UK, in Canada, and in the US, and that the same suggestion has been made by Heydon J.
(24) The fiduciary duty of loyalty under Delaware corporate law includes an obligation to act in good faith.
(44) However, only 8.5 percent of the agreements purported to modify or eliminate any fiduciary duty of care owing among members.
Probably not; as its regs don't require a full-time fiduciary duty, they aren't likely to care.
Initially, he states the need to better demonstrate why the traditional and strict no-conflict and no-profit rules connect with the core fiduciary duty of loyalty to prevent violations of that core duty.
This fiduciary duty is defined by a number of laws and regulations, not the least of which derive from the Uniform Prudent Investor Act and ERISA.
Sprouse is not alone in assuming that someone she was paying to provide retirement advice was naturally looking out for her, which was the point of the PIABA's white paper: The brokerage industry uses advertising that "creates the illusion of a fiduciary duty" only to disclaim any such duty when clients are dissatisfied.
be a fiduciary duty at all, and there are those who would do away with
In some states a fiduciary duty is presumed on the part of agents and brokers--this is usually true when it comes to handling clients' premium payments--while in other states the opposite is true.
Does it advance analysis, for example, to recast the arbitrary-and-capricious standard of federal administrative law as a fiduciary duty of care?
In BCE, an oppression remedy case involving the world's largest leveraged buyout at the time (CAD $51.7 billion), (19) the Court entrenched the principle of fair treatment within the fiduciary duty of directors to act "in the best interests of the corporation".
Even worse is the apparent ease with which the SEC assumes a broker or advisor could dispense with a uniform fiduciary duty to a client.