Fiduciary responsibility

Fiduciary responsibility - Fiduciary responsibility A...

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Fiduciary responsibility A fiduciary duty is a legal or ethical relationship of confidence or trust between two or more parties , most commonly a fiduciary and a principal . One party, for example a corporate trust company or the trust department of a bank, holds a fiduciary relation or acts in a fiduciary capacity to another, such as one whose funds are entrusted to it for investment. In a fiduciary relation one person, in a position of vulnerability, justifiably reposes confidence, good faith , reliance and trust in another whose aid, advice or protection is sought in some matter. In such a relation good conscience requires one to act at all times for the sole benefit and interests of another, with loyalty to those interests. A fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence. [1] A fiduciary duty [1] is the highest standard of care at either equity or law. A fiduciary (abbreviation fid ) is expected to be extremely loyal to the person to whom he owes the duty (the " principal "): he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents. The word itself comes originally from the
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This note was uploaded on 10/16/2010 for the course SOC 149 taught by Professor Parker during the Spring '10 term at UC Riverside.

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Fiduciary responsibility - Fiduciary responsibility A...

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