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Fiduciary: meaning, definitions and examples

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fiduciary

 

[fɪˈdjuːʃiˌɛri ]

Definitions

Context #1 | Noun

legal responsibility

A fiduciary is a person or organization that acts on behalf of another person or group, putting their clients' interests ahead of their own, with a duty to preserve good faith and trust. Fiduciaries are bound by law to act in the best interest of the beneficiary, making financial decisions and handling assets responsibly.

Synonyms

agent, guardian, trustee.

Examples of usage

  • The lawyer served as a fiduciary for the estate.
  • Investors rely on fiduciaries to manage their investments.
  • She acted as a fiduciary trustee for her late father's trust.
Context #2 | Adjective

financial trust

Describing a relationship or duty that involves trust, particularly regarding financial affairs. A fiduciary duty requires individuals to act in the best interests of another party, maintaining a high standard of care.

Synonyms

obligatory, responsible, trust-based.

Examples of usage

  • The bank has a fiduciary obligation to its clients.
  • He was accused of breaching his fiduciary duties.
  • The partnership was built on fiduciary principles.

Interesting Facts

Etymology

  • The term originates from the Latin word 'fiducia,' meaning 'trust' or 'confidence.'
  • It has evolved in legal contexts since the 17th century, reflecting a formal relationship built on trust.
  • The concept links back to ancient times when guardians managed property for those unable to do so themselves.

Law

  • In legal terms, fiduciaries have a duty of care, meaning they must act in the best interest of the person they are assisting.
  • Breaching fiduciary duty can lead to legal consequences, highlighting the importance of trust in these relationships.
  • Common fiduciaries include attorneys, trustees, and financial advisors who handle others' assets.

Finance

  • In finance, a fiduciary relationship can influence investment strategies, ensuring that clients’ needs come first.
  • Fiduciary advisors are often compensated on a fee-only basis, as opposed to commissions, which can reduce conflicts of interest.
  • The rise of fiduciary standards aims to protect consumers from advice that may benefit the advisor more than the client.

Psychology

  • Trust is a key component in fiduciary relationships, affecting how people feel about sharing their financial information.
  • The betrayal of fiduciary duty can lead to significant emotional distress for clients, often with long-term impacts.
  • Clients' perceptions of risk and security are maximized when they know a fiduciary has their best interests at heart.

Modern Issues

  • In recent years, discussions around fiduciary responsibilities have increased, especially in the context of retirement planning.
  • There are debates about whether all financial advisors should adhere to fiduciary standards to protect consumers better.
  • The rise of technology in finance has introduced new challenges for fiduciaries in maintaining transparency and accountability.

Translations

Translations of the word "fiduciary" in other languages:

🇵🇹 fiduciário

🇮🇳 विश्वासपात्र

🇩🇪 Treuhänder

🇮🇩 fidusia

🇺🇦 фідуціарний

🇵🇱 fiducjarny

🇯🇵 信託の

🇫🇷 fiduciaire

🇪🇸 fiduciario

🇹🇷 güvenilir

🇰🇷 신탁의

🇸🇦 موثوق

🇨🇿 fiduciární

🇸🇰 fiduciárny

🇨🇳 受托人

🇸🇮 fiduciarni

🇮🇸 fjárfesting

🇰🇿 сенімгер

🇬🇪 ნდობით აღჭურვილი

🇦🇿 etimadlı

🇲🇽 fiduciario

Word Frequency Rank

Position #9,050 indicates this is an advanced-level word. While not essential for basic communication, it will enhance your ability to understand and create more nuanced content.