fiduciary

(redirected from Fiduciary relationship)
Also found in: Dictionary, Thesaurus, Legal, Financial.
Related to Fiduciary relationship: fiduciary duty

fiduciary

(fĭdo͞o`shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. Among the common fiduciary relationships are guardian to ward, parent to child, lawyer to client, corporate director to corporation, trustee to trusttrust,
in law, arrangement whereby property legally owned by one person is administered for the benefit of another. Three parties are ordinarily needed for the relation to arise: the settlor, who bequeaths or deeds the property for another's benefit; the trustee, in whose hands
..... Click the link for more information.
, and business partner to business partner. In discharging a trust, the fiduciary must be absolutely open and fair. Certain business methods that would be acceptable between independent parties dealing with one another "at arm's length" may expose a fiduciary to liability for having abused a position of trust. Thus, in an ordinary business transaction the prospective purchaser of land need not inform the seller of an imminent rise in realty values, but one buying land from a partner must disclose such information. In many cases courts will treat an unexplained profit derived from a fiduciary relationship as an instance of constructive fraudfraud,
in law, willful misrepresentation intended to deprive another of some right. The offense, generally only a tort, may also constitute the crime of false pretenses. Frauds are either actual or constructive.
..... Click the link for more information.
.

fiduciary

Law
1. a person bound to act for another's benefit, as a trustee in relation to his beneficiary
2. 
a. having the nature of a trust
b. of or relating to a trust or trustee
References in periodicals archive ?
(31) This approach, treating the fiduciary relationship as merely one point on a scale of standards, is in my experience not widely accepted.
The second condition of a fiduciary relationship is that the beneficiary is incapable of controlling the fiduciary's exercise of power--and following from that fact, the beneficiary is vulnerable to abuses of the fiduciary's power.
The term confidential relation, however, often is used when the relationship is similar to those noted in a fiduciary relation but does not fit into one of the well-defined categories of fiduciary law." The categories mentioned in [section] 481 include, inter alia, "[a] trustee of an express trust," "personal representatives of estates," and "[a] guardian or conservator." The section goes on to list some categories where a fiduciary relationship has or has not been found.
An officer, director or stockholder of a corporation in particular is subject to restraint in this connection because of the position of trust he occupies and the fiduciary relationship he holds and enjoys with the corporation and the stockholders, imposing upon him the duty to exercise good faith toward the corporation and to subordinate his own selfish interests to those of the corporation where they conflict.
Fiduciary law does not necessitate either that courts inquire into the reason for fiduciaries' conflicts of interest to determine whether a fiduciary relationship exists or to uphold fiduciaries' duties toward their beneficiaries.
are per se insufficient to establish the existence of a fiduciary relationship", and that "when parties deal at arms length in a commercial transaction, no relation of confidence or trust sufficient to find the existence of a fiduciary relationship will arise absent extraordinary circumstances".
Leib, Ponet, and Serota indicate three key features of the fiduciary relationship: discretion, trust, and vulnerability.
(22) Second, the architecture of the fiduciary relationship often
Many will move to take on one of the three go-to fiduciary relationship structures programmed directly into ERISA, he predicts.
The fiduciary relationship is one of the most fundamental legal relationships, and its importance for both public and private law is increasingly recognized.
As a means to battle that "false hope," Joe Magnet, counsel for CAP, said a declaration that made it clear that the Crown and Metis were in a fiduciary relationship would be necessary as would a declaration that the Crown needed to consult and negotiate with the Metis.
But when do investment discussions create a fiduciary relationship? According to the speakers: