Fiduciary
fɪˈdjuːʃəri
Definitions
2 meaningsA person or organization that is entrusted with holding and managing property or money for another person or entity.
fɪˈdjuːʃəri
A person or institution that holds something in trust for another.
The lawyer served as the fiduciary for the estate.
💡 Simply: Imagine your parents trust you with their pet hamster while they are away. That makes you the hamster's fiduciary! You're responsible for taking care of it and making sure it's happy and safe. If you were a financial fiduciary, you would be entrusted with someone else's money and responsible for managing it for their benefit. This is a big responsibility!
👶 For kids: A person who is trusted to take care of something for someone else, like a babysitter for a baby!
More Examples
The court appointed a fiduciary to manage the affairs of the incapacitated person.
Banks act as fiduciaries when they manage investment accounts for their clients.
How It's Used
"The trustee acted as a fiduciary for the beneficiaries of the trust."
"Financial advisors often act as fiduciaries, responsible for their clients' investments."
Involving trust, especially with respect to the relationship between a trustee and a beneficiary.
fɪˈdjuːʃəri
Relating to the legal or ethical relationship of trust.
The fiduciary duty requires utmost loyalty.
💡 Simply: It's like when you trust your best friend with a secret. Their role is to be a trustworthy friend and keep your secret safe. A fiduciary relationship is a super important agreement built on trust, where one person or company is legally required to put the other's interests first, even before their own!
👶 For kids: Being trusted to do the right thing for someone.
More Examples
The court found the company had breached its fiduciary responsibility.
He acted in a fiduciary capacity on behalf of his clients.
How It's Used
"The fiduciary duty required the financial advisor to act in the best interest of the client."
"A fiduciary relationship exists when one party places trust in another."
Synonyms & Antonyms
Synonyms
Antonyms
Idioms & expressions
fiduciary duty
The legal obligation to act solely in another party's interests.
"Financial advisors have a fiduciary duty to their clients."
breach of fiduciary duty
Violation of the legal obligation to act solely in another party's interests.
"The manager was sued for breach of fiduciary duty."
From Latin *fiducia* ('trust' or 'confidence'). It signifies a relationship based on trust and confidence, historically arising in Roman law and later adopted in English common law.
The term and concept of fiduciary duty have roots in Roman law and have been a cornerstone of common law, particularly in areas of trusts, agency, and corporate governance for centuries.
Memory tip
Think of a 'faithful dude' to help remember this word. A fiduciary is someone you can trust with important things.
Word Origin
"trust, confidence"