Definition of Fiduciary:
A fiduciary might be responsible for general well-being, but often the task involves finances—managing the assets of another person, or of a group of people, for example. Money managers, financial advisors, bankers, accountants, executors, board members, and corporate officers all have fiduciary responsibility. .
A fiduciary is a person or organization that acts on behalf of another person or persons to manage assets. Essentially, a fiduciary owes to that other entity the duties of good faith and trust. The highest legal duty of one party to another, being a fiduciary requires being bound ethically to act in the other's best interests.
Person or a legal entity (firm, bank, credit union) holding assets (cash, property, securities) or information as an agent-in-trust for a principal (stockholder, customer, member). A fiduciary owes (among other obligations) the duty of loyalty, full disclosure, obedience, diligence, and of accounting for all monies handed over, to the principal. A fiduciary must not exploit his or her position of trust and confidence for personal gain at the expense of the principal. Law demands a fiduciary to exercise highest degree of care and utmost good faith in maintenance and preservation of the principals assets and rights, and imposes compensatory as well as punitive damages on the erring fiduciary.
Involving trust, especially with regard to the relationship between a trustee and a beneficiary.
Synonyms of Fiduciary
Believable, Colorable, Conceivable, Convictional, Credible, Depositary, Depository, Fiducial, Held in pledge, Held in trust, In escrow, In trust, Pistic, Plausible, Reliable, Tenable, Trustee, Trustworthy, Trusty, Unexceptionable, Unimpeachable, Unquestionable, Worthy of faith
How to use Fiduciary in a sentence?
- When choosing a fiduciary to handle your personal funds and loans, you want someone who is very trustworthy and has your goals in mind.
- Registered investment advisors have a fiduciary duty to clients; broker-dealers just have to meet the less-stringent suitability standard, which doesn't require putting the client's interests ahead of their own.
- Banks, mortgage companies, and many other organizations that deal in the financial industry by holding, managing, or administrating property or money are part of the fiduciary industry and have to answer to specialized government rules.
- The company has a fiduciary duty to shareholders.
- An investment fiduciary is anyone with legal responsibility for managing somebody else's money, such as a member of the investment committee of a charity.
- Executors or trustees are fiduciaries - agents legally responsible for managing property for the benefit of another individual or a group.
- Fiduciary duties appear in a range of business relationships, including a trustee and a beneficiary, corporate board members and shareholders, and executors and legatees.
- A fiduciary acts on behalf of another person, or persons, to manage assets. Their duties are both ethical and legal.
Meaning of Fiduciary & Fiduciary Definition