Table of Contents
What is meant by the term fiduciary?
A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients' interests ahead of their own, with a duty to preserve good faith and trust. Being a fiduciary thus requires being bound both legally and ethically to act in the other's best interests.
What is the best definition of a fiduciary relationship?
A relationship in which one party (the fiduciary) is placed in a position of trust and confidence in relation to another party and acts on their behalf or in their interests in some respect.
What fiduciary responsibility means?
When someone has a fiduciary duty to someone else, the person with the duty must act in a way that will benefit someone else, usually financially. The person who has a fiduciary duty is called the fiduciary, and the person to whom the duty is owed is called the principal or the beneficiary.
What is fiduciary explain with example?
The most common fiduciary relationships involve legal or financial professionals who agree to act on behalf of their clients. For example, a lawyer and a client have a fiduciary relationship. So do a trustee and a beneficiary, a corporate board and its shareholders, and an agent acting for a principal.
What is the best definition of a fiduciary relationship?
A relationship in which one party (the fiduciary) is placed in a position of trust and confidence in relation to another party and acts on their behalf or in their interests in some respect.
What is the meaning of fiduciary relationship?
A relationship in which one party (the fiduciary) is placed in a position of trust and confidence in relation to another party and acts on their behalf or in their interests in some respect.
What is fiduciary relationship quizlet?
"Fiduciary" means involving mutual confidence and absolute trust between parties. All agency relationships are based around the principle of being fiduciary. It means a high level of trust and mutual confidence is required for the principal to transact on their behalf and represent their best interests.
What is an example of a fiduciary relationship?
The most common fiduciary relationships involve legal or financial professionals who agree to act on behalf of their clients. For example, a lawyer and a client have a fiduciary relationship. So do a trustee and a beneficiary, a corporate board and its shareholders, and an agent acting for a principal.
What are the characteristics of a fiduciary relationship?
There are five qualities you will typically want to look for in a fiduciary relationship. You will want someone that is trustworthy, representative, credible, knowledgeable, and understanding.