fiduciary
adjective
, -shə-rē, -ˈdyü-, fī-\
Definition of fiduciary
(Entry 1 of 2)
fiduciary
nounDefinition of fiduciary (Entry 2 of 2)
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Examples of fiduciary in a Sentence
Recent Examples on the Web: Adjective
Irgens, in response, said the firm always acts responsibly to meet fiduciary obligations. — Tom Daykin, Milwaukee Journal Sentinel, "Milwaukee's Irgens development firm, former partners settle lawsuit," 5 July 2018 Mark Wilson Getty Images President Donald Trump’s charitable foundation has persistently broken state and federal laws with improper political activity, self-dealing and failing to follow basic fiduciary obligations, New York said in a lawsuit. — Fortune, "Trump Foundation Accused of Violating Charity Law," 14 June 2018 The advisers at these firms, legally referred to as Investment Adviser Representatives, have a fiduciary obligation to act in their clients’ best interests, and to mitigate and disclose conflicts of interest. — David Savir, miamiherald, "Investor beware: Your financial advisor may not have to act in your best interest | Miami Herald," 28 May 2018 This board has a fiduciary obligation to care for this university. — David Jesse, Detroit Free Press, "Engler adviser: Nassar survivor's claims of payout 'fake news'," 18 Apr. 2018 Henry Mazurek, a lawyer representing Mr. Huberfeld, said his client was different from Mr. Seabrook, who had a fiduciary duty to his union members. — Corinne Ramey, WSJ, "Hedge Fund Co-Founder Gets 30 Months for Role in Alleged Bribery Scheme," 12 Feb. 2019 As long as personal data is the company’s lifeblood, there will always be a fiduciary requirement to collect more, to compute more. — Jacob Silverman, Longreads, "Searching for a Future Beyond Facebook," 2 May 2018 Some of those positions required him to assume fiduciary responsibilities to protect those companies’ interests, the Times notes. — Beth Mole, Ars Technica, "Top cancer expert forgot to mention $3.5M industry ties—he just resigned," 14 Sep. 2018 The entity or association sponsoring the 401(k) plan would serve as the fiduciary and have responsibility for setting up and running the plan. — Anne Tergesen, WSJ, "401(k) Rule Change Would Ease Small Companies’ Path to Joint Plans," 22 Oct. 2018Recent Examples on the Web: Noun
Estate planning attorney Jennifer Sawday, a partner at TLD Law in Long Beach, California, often recommends that clients consider appointing a corporate trustee or a professional fiduciary as their executor. — Liz Weston, The Seattle Times, "How to write a will that won’t trigger a family feud," 24 Sep. 2018 Separate guidance from the agency would shield the firm from a provision of the Employee Retirement Income Security Act of 1974 prohibiting fiduciaries from self-dealing, including earning fees as a result of their recommendations. — Anne Tergesen, WSJ, "Labor Department Clears Path for Automatic 401(k) Transfers," 12 Nov. 2018 For instance, individuals are allowed to sue fiduciaries of employer and union plans for charging a commission. — The Editorial Board, WSJ, "Tom Perez’s Fiduciary Flop," 18 Mar. 2018 Fiduciary standard The growth of CITs in recent years also may be getting help from the pressure on retirement plans and financial professionals giving retirement advice to act as fiduciaries—a legal requirement to act in the client’s interest. — Bailey Mccann, WSJ, "CITs, the Not-Exactly Mutual Funds, Are on Pace to Hit $3 Trillion," 3 June 2018 Stewart-Cabrera, 52, is a professional fiduciary who served as a trustee for a trust that owned a Sacramento property, according to a news release from the U.S. Attorney's Office for the Eastern District of California. — Kayla Fitzgerald, sacbee, "Woman accused of cheating trustees, spending their money on Vegas gambling trip," 30 May 2018 Bankruptcy professionals are fiduciaries, required by law to have an undivided loyalty to their clients. — Mary Williams Walsh, New York Times, "McKinsey Hid Conflicts of Interest From Courts, Lawsuit Says," 9 May 2018 This federal law requires individuals who manage the plan to act as fiduciaries and operate in the best interest of the participants. — Darla Mercado, USA TODAY, "1-in-3 workers can’t answer this question about their retirement savings," 28 Apr. 2018 Her son, Kyle Johnson, filed court docs Friday nominating four fiduciaries to become his mom's conservators. — Sydney Scott, Essence.com, "The Quick Read: 'Star Trek' Star Nichelle Nichols Reportedly Suffering From Dementia," 7 May 2018These example sentences are selected automatically from various online news sources to reflect current usage of the word 'fiduciary.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for fiduciary
fiduciary
nounFinancial Definition of fiduciary
What It Is
A fiduciary is a person or entity responsible for managing a qualified retirement plan in accordance with the Employee Retirement Income Security Act (ERISA).
In a broader sense, a fiduciary is a person or entity responsible for acting in the best interests of others -- typically an investment client, a company's shareholders or a beneficiary.
How It Works
For example, let's say Company XYZ gets a 401(k) plan. The employees and the company contribute to the plan, which soon has $3,000,000 of assets. A named fiduciary, which works for the 401(k) administrator, is responsible for ensuring that the assets are invested according to the employees' wishes and that Company XYZ is matching the employee contributions as promised. The named fiduciary is not responsible for making Company XYZ happy -- it is responsible for making the 401(k) plan participants happy.
A trustee is a person or entity that has a fiduciary duty to another person or entity, called the beneficiary. The trustee holds cash, assets, or title to property for the benefit of the beneficiary. The trustee's job is to manage the assets in the trust appropriately and to ensure that they are disbursed in the best interests of the beneficiary.
The purpose of the board of directors is to make sure management is acting in the best interests of the shareholders. This is why the board of directors lays at the heart of the notion of corporate governance: It has a fiduciary duty to the shareholders, and only to the shareholders. This can be difficult, especially when the vast majority of information that boards receive about corporate performance comes from management.
Why It Matters
Fiduciary duty is one of the most revered and powerful aspects of the financial world. Fiduciary duty requires a person to act in the best interest of his or her clients, and when a named fiduciary does not do so, the consequences can involve civil or even criminal penalties.
Source: Investing Answers
fiduciary
adjective
English Language Learners Definition of fiduciary
See the full definition for fiduciary in the English Language Learners Dictionary
fiduciary
noun
\
Legal Definition of fiduciary
(Entry 1 of 2)
fiduciary
adjectiveLegal Definition of fiduciary (Entry 2 of 2)
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