Definition of fiduciary
fiduciaries
: one that holds a fiduciary relation or acts in a fiduciary capacity
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Recent Examples of fiduciary from the Web
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Formerly held to only a suitability standard, advisers who provide advice to retirement savers will now be required to be fiduciaries.
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Formerly held to only a suitability standard, advisers who provide advice to retirement savers will now be required to be fiduciaries.
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The argument sounds reasonable on the surface, but what if all investment committees and fiduciaries responsible...
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But Frerichs said Secure Choice is designed to make the state the fiduciary for the program.
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Thomas finally dropped that sales broker and moved their investments to a financial fiduciary.
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Fiduciaries, on the other hand, have a legal obligation to put your interests before theirs and act in your best interest.
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
Other Economics Terms
fiduciary
Definition of fiduciary
: of, relating to, or involving a confidence or trust: such asa : held or founded in trust or confidence a fiduciary relationship a bank's fiduciary obligationsb : holding in trustc : depending on public confidence for value or currency fiduciary fiat money
Recent Examples of fiduciary from the Web
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As of July 1, there is a memorandum of understanding with the town of Killingly which will act as a fiduciary for one year.
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But for now, the new fiduciary rule is the law of the land.
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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.
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By that argument, leaking is practically your fiduciary duty!
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Whole Foods’ board, of course, has a fiduciary duty to its stockholders to consider any viable takeover offer.
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According to the lawsuit, Dye -- the son of the former Auburn football coach -- is suing Sexton for breach of contract, unjust enrichment, fraud, breach of fiduciary duties, violation of trade secrets and tortious interference.
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The foundation's primary insurance policy covers violations of fiduciary duty by officers and investigators.
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The fund’s fiduciary adviser, Hearthstone Inc., has hired Bob Taunton, a Treasure Valley land-use consultant.
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.
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
Other Economics Terms
Financial Definition of FIDUCIARY
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.
FIDUCIARY Defined for English Language Learners
fiduciary
Definition of fiduciary for English Language Learners
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: relating to or involving trust (such as the trust between a customer and a professional)
Law Dictionary
Legal Definition of fiduciary
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
fiduciary
Legal Definition of fiduciary
1 : of, relating to, or involving a confidence or trust a guardian acting in his fiduciary capacity
2 : of or relating to a fiduciary or the position of a fiduciary a fiduciary bond
Origin and Etymology of fiduciary
Latin fiduciarius, from fiducia trust, transfer of a property on trust
Learn More about fiduciary
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See words that rhyme with fiduciary Spanish Central: Translation of fiduciary Nglish: Translation of fiduciary for Spanish speakers Britannica English: Translation of fiduciary for Arabic speakers Britannica.com: Encyclopedia article about fiduciary
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