fiduciary
adjective
-shə-rē, -ˈdyü-, fī-\
Definition of fiduciary
(Entry 1 of 2)
: 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
fiduciary
nounDefinition of fiduciary (Entry 2 of 2)
: one that holds a fiduciary relation or acts in a fiduciary capacity
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Examples of fiduciary in a Sentence
Recent Examples on the Web: Adjective
The company also faces a possible separate investigation into whether its wealth management division made improper referrals or recommendations to the company’s investment and fiduciary services businesses. — USA TODAY, "Wells Fargo to be hit with $1B penalty: Report," 19 Apr. 2018 Specifically, the lawsuit accuses the hospital of breaching its fiduciary duty to protect patient privacy under Missouri law. — Kelsey Ryan, kansascity, "Children’s Mercy faces class action lawsuit over data breach affecting thousands," 10 July 2018 The suit also accused his daughter Janice of conspiracy and breach of fiduciary duty. — Gretchen Morgenson, WSJ, "Buzz Aldrin Fights Family For Control of His Space Legacy," 25 June 2018 In a court filing, Attorney General Mike DeWine argues that violated Lager's fiduciary duty to ECOT and that the public contracts were void. — Fox News, "Ohio official says e-school's founder should repay millions," 4 July 2018 Additionally, agents representing the home listing have a fiduciary duty to the home seller. — Desiree Lira, miamiherald, "Buying a home is not like purchasing a plane ticket, and selling a property is not like selling a car," 25 June 2018 What remains unclear is whether the fiduciary rule will leave any imprint. — Tara Siegel Bernard, New York Times, "Obama-Era Investor Protection Rule Is Dead," 22 June 2018 Burtch is suing the officers and directors for breach of fiduciary duties. — Patrick Danner, San Antonio Express-News, "‘Toxic atmosphere’ at Parker School Uniforms led to bankruptcy, lawsuit alleges," 22 June 2018 Depp is claiming breach of fiduciary duty, fraud and negligence. — Connor Whittum, Billboard, "10 Things We Learned From Johnny Depp's Revealing 'Rolling Stone' Interview," 22 June 2018Recent Examples on the Web: Noun
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 2018 Others want to treat tech giants more as information fiduciaries, which have a legal responsibility to protect user data. — Nellie Bowles, New York Times, "After Cambridge Analytica, Privacy Experts Get to Say ‘I Told You So’," 12 Apr. 2018 Facebook needs to act as a fiduciary for the information sharing it enables. — Alan Murray, Fortune, "Facebook, Deutsche Bank, Rusal: CEO Daily for April 9, 2018," 9 Apr. 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
adjectiveEnglish Language Learners Definition of fiduciary
: relating to or involving trust (such as the trust between a customer and a professional)
See the full definition for fiduciary in the English Language Learners Dictionary
fiduciary
noun
\
Legal Definition of fiduciary
(Entry 1 of 2)
: 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
adjectiveLegal Definition of fiduciary (Entry 2 of 2)
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
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