fiduciary
Sign in to savethumb|right|upright=1.4|The Court of Chancery, which governed fiduciary relations in England prior to the Judicature Acts A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (legal person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for example, a corporate trust company or the trust department of a bank, acts in a fiduciary capacity to another party, who, for example, has entrusted funds to the fiduciary for safekeeping or investment. Likewise, financial advisers,
Wikidata facts
- Instance of
- occupation
- Subclass of
- proxy
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- P425
- finance
- P1889
- fiducial
- P1343
- Pauly–Wissowa
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Article
19 sectionsContents
- In different jurisdictions
- Fiduciary duties under Delaware corporate law
- Fiduciary duty in Canadian corporate law
- Relationships
- Possible relationships
- Examples
- Elements of duty
- Accountability
- Conflict of duties
- No-profit rule
- Avoiding these accountabilities
- Constructive trusts
- Account of profits
- Compensatory damages
- Fiduciary duty and pension governance
- See also
- References
- Further reading
- External links
thumb|right|upright=1.4|The Court of Chancery, which governed fiduciary relations in England prior to the Judicature Acts A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (legal person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for example, a corporate trust company or the trust department of a bank, acts in a fiduciary capacity to another party, who, for example, has entrusted funds to the fiduciary for safekeeping or investment. Likewise, financial advisers, financial planners, and asset managers, including managers of pension plans, endowments, and other tax-exempt assets, are considered fiduciaries under applicable statutes and laws. In a fiduciary relationship, one person, in a position of vulnerability, justifiably vests confidence, good faith, reliance, and trust in another whose aid, advice, or protection is sought in some matter. In such a relation, good conscience requires the fiduciary to act at all times for the sole benefit and interest of the one who trusts.
Fiduciary duties in a financial sense exist to ensure that those who manage other people's money act in their beneficiaries' interests, rather than serving their own interests.