fiduciary

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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
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, 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.
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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 ?
Many plan fiduciaries are unaware of the plan governance practices necessary to comply with ERISA and become aware of an alleged violation as a result of a DOL investigation or participant lawsuit.
Rockford Products, in which the District Court concluded that “allowing a fiduciary to be liable for failing to correct a breach by prior fiduciaries would destroy the protection of ERISA Section 1109(b).”
The duty of care that presumptively applies to all fiduciaries is not the same as the general tort law duty of care that applies to everyone.
(29) It accomplishes this task by imposing strict duties on fiduciaries, including, importantly, requiring fiduciaries to act honestly, selflessly, with integrity, and in the best interests of their beneficiaries.
As those who read this column regularly know, claims brought against plan fiduciaries often involve the cost of administering and managing the plan.
(10) Anglo-American private law traditionally imposes substantial duties upon fiduciaries in order to incentivize them to prioritize their beneficiaries' interests above their own.
Once the provider is deemed to be a fiduciary, the provider becomes subject to a higher standard of care under ERISA, as well as particular limitations on the conduct of fiduciaries, i.e., prohibited transaction rules.
ERISA and the IRC generally prohibit fiduciaries from receiving payments from third parties and from recommending certain products that increase their own compensation in connection with investment advice rendered to participants and beneficiaries of an ERISA plan, IRA owners and those individuals who act as fiduciaries for an IRA or ERISA plans.
While not related to the DOL Rule, fiduciaries also should be aware of a Supreme Court Case settled in 2015, Tibble v.
70 percent of advisors market themselves as fiduciaries and most, nearly 90 percent, communicate the term verbally versus using it in marketing materials (70 percent of fiduciary respondents).
In Part III, we discuss fiduciary governance in the context of the hallmark fiduciary obligation of loyalty, contrasting the familiar ways in which fiduciaries exhibit loyalty to persons with the notion of loyalty to purposes that constrains execution of fiduciary governance mandates.
The Problem: Articulating Standards for Conflicted Fiduciaries B.