fiduciary duty
Loyalty to clients
Fiduciary duty is the legal obligation to act in another's best interest rather than your own.
It applies to trustees, attorneys, financial advisors, and corporate board members—anyone entrusted with managing another's affairs or assets.
Breaching fiduciary duty means prioritizing personal gain over the client's welfare: The executor was sued for breaching his fiduciary duty to the estate.
One managing another's assets
- beneficiaryDesignated asset receiver
- trustorTrust agreement maker
- estateProperty and grounds
- assetsOwned items of value
custodian · portfolio · pension fund · endowment · charitable trust · estate planning · wealth management · investment management
Professional guiding monetary allocations
- broker-dealerLicensed securities trading entity
- suitabilityState of being apt
- best interestWhat benefits someone most
- commissionPayment for services rendered
disclosure · SEC · FINRA · custody · prudence · diversification · risk management · due diligence
Moral soundness and consistency
- honestyTruthfulness, sincerity
- loyaltyFaithful commitment to another
- good faithSincere, honest intent
- fairnessJust and equal treatment
prudence · diligence · confidentiality · transparency · accountability · impartiality · discretion · professionalism
Governing body of organization
- officerAuthority figure in uniform
- shareholderEquity owner in corporation
- stakeholderParty with an interest
- corporate governanceCompany direction and control
oversight · stewardship · accountability · transparency · audit · executive compensation · proxy · voting
Required task or commitment
- liabilityLegal or financial obligation
- breachBreaking of agreement
- negligenceFailure to exercise care
- malpracticeHarmful professional negligence
standard of care · burden of proof · damages · remedy · injunction · disclosure · conflict of interest · self-dealing
trustee
One managing another's assets
- beneficiaryDesignated asset receiver
- trustorTrust agreement maker
- estateProperty and grounds
assets · custodian · portfolio · pension fund · endowment · charitable trust · estate planning · wealth management · investment management · breach
investment advisor
Professional guiding monetary allocations
- broker-dealerLicensed securities trading entity
- suitabilityState of being apt
- best interestWhat benefits someone most
commission · disclosure · SEC · FINRA · custody · prudence · diversification · risk management · due diligence · securities
integrity
Moral soundness and consistency
- honestyTruthfulness, sincerity
- loyaltyFaithful commitment to another
- good faithSincere, honest intent
fairness · prudence · diligence · confidentiality · transparency · accountability · impartiality · discretion · professionalism · trustworthiness
board of directors
Governing body of organization
- officerAuthority figure in uniform
- shareholderEquity owner in corporation
- stakeholderParty with an interest
corporate governance · oversight · stewardship · accountability · transparency · audit · executive compensation · proxy · voting · bylaws
obligation
Required task or commitment
- liabilityLegal or financial obligation
- breachBreaking of agreement
- negligenceFailure to exercise care
malpractice · standard of care · burden of proof · damages · remedy · injunction · disclosure · conflict of interest · self-dealing · confidentiality
- corporate governanceboard, board members, board chair, board meeting, chairman
- legal ethicslegal ethics, attorney-client privilege, professional conduct, privilege, code of ethics
- legal obligationstaxes, paying taxes, fines, debt, contract signing
- legal responsibilityliability, negligence, culpability, accountability, fault
- nonprofit termsexecutive director, board chair, board member, trustee, board of directors
- obligationsobligations, contractual obligations, contract, military service, agreement
fiduciary dutyself-dealing
Misusing fiduciary position
breach of trust · self-interest · conflict of interest · self-serving · disloyalty
fiduciary dutydereliction of duty
Willful failure at responsibilities