fiduciary

play

noun fi·du·cia·ry \ fə-ˈdü-shē-ˌer-ē , -shə-rē , -ˈdyü- , fī- \

Updated on: 26 Jul 2017

Definition of fiduciary

plural fiduciaries

:one that holds a fiduciary relation or acts in a fiduciary capacity

fiduciary was our Word of the Day on 07/21/2014. Hear the podcast!

Recent Examples of fiduciary from the Web

Formerly held to only a suitability standard, advisers who provide advice to retirement savers will now be required to be fiduciaries.

— syndicated columns, OregonLive.com, "3 reasons you should care about the fiduciary rule," 18 June 2017
Formerly held to only a suitability standard, advisers who provide advice to retirement savers will now be required to be fiduciaries.

— arielle o’shea, USA TODAY, "3 reasons you should care about the fiduciary rule now in effect," 13 June 2017
According to the fiduciaries of the firefighters of Tamarac, board members at United Continental have failed at this task.

— gretchen morgenson, New York Times, "How Badly Must a C.E.O. Behave Before His Pay Is Clawed Back?," 9 June 2017
The argument sounds reasonable on the surface, but what if all investment committees and fiduciaries responsible...

— WSJ, "Portland’s Cop-Out on Investor Responsibility," 23 May 2017
But Frerichs said Secure Choice is designed to make the state the fiduciary for the program.

— gail marksjarvis, chicagotribune.com, "Senate vote deals blow to Illinois retirement savings program," 3 May 2017
Thomas finally dropped that sales broker and moved their investments to a financial fiduciary.

— kim curtis, The Denver Post, "Finding a financial fiduciary means finding a financial adviser who’s on your side," 30 Apr. 2017
Fiduciaries, on the other hand, have a legal obligation to put your interests before theirs and act in your best interest.

— paul b. brown, New York Times, "Investing Advice That Doubles as a Bookmark," 15 Jan. 2016

These 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.

Origin and Etymology of fiduciary

see ²fiduciary

NEW! Time Traveler

First Known Use: 1631

See Words from the same year

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer

fiduciary

adjective

Definition of fiduciary

:of, relating to, or involving a confidence or trust: such as

a :held or founded in trust or confidence

a fiduciary relationship

a bank's fiduciary obligations

b :holding in trust

c :depending on public confidence for value or currency

fiduciary fiat money

See fiduciary defined for English-language learners

Recent Examples of fiduciary from the Web

Earlier this month, one of Uber’s earliest investors, Benchmark Capital, filed suit against former CEO Travis Kalanick for fraud and breach of fiduciary duty, among other things.

— jennifer van grove, sandiegouniontribune.com, "Uber attempts to be more driver-friendly," 22 Aug. 2017
These are public companies with a fiduciary duty to its shareholders--not to the American people.

— the tylt, AL.com, "Should tech companies ban white supremacists from their platforms?," 14 Aug. 2017
Finance Lea Anne Groover was appointed vice president, senior fiduciary adviser at PNC Financial Services, Orlando.

— orlando sentinel, OrlandoSentinel.com, "People on the move 08/14," 11 Aug. 2017
But what began as a banal fiduciary constraint evolved over the years into an exciting formal challenge for television creators: there’s nothing like trying to write your way out of a cage to enliven a dull season.

— rachel syme, New Republic, "The Constrained Elegance of Room 104," 29 July 2017
But with a fiduciary rule, banks would have to check that their customers were always getting the best rate on offer.

— The Economist, "Following a fiduciary rule," 13 July 2017
As of July 1, there is a memorandum of understanding with the town of Killingly which will act as a fiduciary for one year.

— denise coffey, Courant Community, "Veterans' Coffeehouse Success Spells Growth, Change," 12 July 2017
But for now, the new fiduciary rule is the law of the land.

— michael j. francis, Milwaukee Journal Sentinel, "The 'fiduciary rule' has a clunky name, but it may save your retirement account a bundle," 1 July 2017
Wiedefeld also broadly supports the notion that board members have a singular, fiduciary duty to the transit system, which business groups and some officials have called for.

— faiz siddiqui, Washington Post, "Nonprofit groups say Metro needs dedicated funding before next fiscal year, even if labor, governance reforms have to wait," 27 June 2017

Did You Know?

Fiduciary relationships often concern money, but the word fiduciary does not, in and of itself, suggest financial matters. Rather, fiduciary applies to any situation in which one person justifiably places confidence and trust in someone else and seeks that person's help or advice in some matter. The attorney-client relationship is a fiduciary one, for example, because the client trusts the attorney to act in the best interest of the client at all times. Fiduciary can also be used as a noun for the person who acts in a fiduciary capacity, and fiduciarily or fiducially can be called upon if you are in need of an adverb. The words are all faithful to their origin: Latin fidere, which means "to trust."

Origin and Etymology of fiduciary

Latin fiduciarius, from fiducia confidence, trust, from fidere — see fidelity

NEW! Time Traveler

First Known Use: circa 1641

See Words from the same year

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer

Financial Definition of FIDUCIARY

fiduciary

noun

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 Defined for English Language Learners

fiduciary

adjective

Definition of fiduciary for English Language Learners

: relating to or involving trust (such as the trust between a customer and a professional)

Law Dictionary

fiduciary

play

noun fi·du·cia·ry \ fə-ˈdü-shə-rē, -ˈdyü-, -shē-ˌer-ē \

legal Definition of fiduciary

plural fiduciaries

:one often in a position of authority who obligates himself or herself to act on behalf of another (as in managing money or property) and assumes a duty to act in good faith and with care, candor, and loyalty in fulfilling the obligation :one (as an agent) having a fiduciary duty to another — see also fiduciary duty at duty, fiduciary relationship — compare principal