fiduciary

/fi'dju:ʃjəri/

Thân thiện

A financial advisor acts in a fiduciary capacity for their client.

Definition

1. Adjective:

   • Relating to or involving trust, confidence, or a legal duty to act for another's benefit: Describes a relationship or responsibility where one party is obligated to act in the best interest of another, often involving the management of money or property.
   • Held or given in trust: Refers to assets or power that are managed on behalf of someone else.

2. Noun:

   • A person or entity that holds a position of trust and confidence, managing assets or interests for another party (the beneficiary): This person or institution has a legal and ethical obligation to prioritize the beneficiary's interests above their own.

Usage Examples

• Adjective:

  • The board members have a fiduciary duty to the company's shareholders.
  • He was acting in a fiduciary capacity when he managed his elderly aunt's finances.

• Noun:

  • The lawyer served as the fiduciary for the estate.
  • As a fiduciary, the investment advisor must avoid conflicts of interest.

Advanced Usage

• "Fiduciary relationship": A relationship based on trust, where one party (the fiduciary) is in a position of power and has a duty to act for the benefit of the other (the principal or beneficiary).

  • The relationship between a doctor and patient is considered a fiduciary relationship.

• "Breach of fiduciary duty": A failure to act according to the responsibilities of a fiduciary, which can lead to legal liability.

  • The executive was sued for breach of fiduciary duty after using company funds for personal expenses.

Variants and Related Words

• Fiducially (adverb): In a fiduciary manner.

  • He acted fiducially on behalf of the trust.

• Fiduciary Duty (noun phrase): The legal obligation of a fiduciary to act in the best interest of the beneficiary.

• Fiduciary Responsibility (noun phrase): Synonymous with fiduciary duty, emphasizing the accountability involved.

Synonyms

• Trustee (noun): A person or firm that holds and administers property or assets for the benefit of a third party.
• Fiducial (adjective): Often used interchangeably with 'fiduciary,' especially in technical or legal contexts.

Related Phrases

• In a fiduciary capacity: Functioning in the role of a trustee or responsible party.

  • The bank officer was acting in a fiduciary capacity when handling the client's assets.

• Fiduciary standard: A legal and ethical requirement that compels a financial advisor to put the client's best interests ahead of their own.

  • Investment advisors are held to a fiduciary standard.

Học thuật

Adjective

1. relating to or of the nature of a legal trust (i.e. the holding of something in trust for another)
   • a fiduciary contract
   • in a fiduciary capacity
   • fiducial power

Noun

1. a person who holds assets in trust for a beneficiary
   • it is illegal for a fiduciary to misappropriate money for personal gain

Từ đồng nghĩa

• fiducial