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 ?
On the other hand, in addition to marketing communications, there are discussions you can have with the prospective client that will not be considered fiduciary advice, such as:
Communications with a prospective client can lead to unintended consequences under the DOL fiduciary rule.
Check out DOL Releases Fiduciary Rule FAQ for Investors, Workers on ThinkAdvisor.
Plan fiduciaries can manage the risk associated with their fiduciary duties by implementing and maintaining procedural prudence defined by appropriate processes and compliance efforts, such as the following:
Establish a framework to delegate fiduciary responsibility and monitor that delegation
Engage an expert fiduciary advisor to accept fiduciary responsibility without disclaimer
The continued application of fiduciary principles despite the notable absence of substantive articulation of the fiduciary concept is troubling.
Judges and legal authors have taken ample opportunities to discuss the fiduciary concept and have engaged in numerous attempts to work out perceived difficulties in its application.
This article asks the twin questions "What is the fiduciary concept?
The related prohibited transaction exemptions impose numerous conditions and requirements on fiduciary advisors.
Under the DOL's existing fiduciary definition for service providers, the provider is deemed to be a fiduciary to the extent it provides "investment advice" relating to plan assets for a fee or other compensation.
Rationale for Repeal of Old Definition - Under the old DOL definition, in order to be a fiduciary providing investment advice, the advisor needed to make recommendations as to investing in securities or other property, or give advice as to their value, on a regular basis.