fiduciary

(adjective)

Related to trusts and trustees.

Related Terms

Examples of fiduciary in the following topics:

  • Employee Retirement Income Security Act

    • Sets minimum standards for participation, vesting, benefit accrual, and funding. provides fiduciary responsibilities for those who manage and control plan assets.
    • Gives participants the right to sue for benefits and breaches of fiduciary duty

  • Banking Crises and Centralized Reserve Enforcements

    • Generally, the Federal Reserve takes formal enforcement actions against the above entities for violations of laws, rules, or regulations, unsafe or unsound practices, breaches of fiduciary duty, and violations of final orders.

  • Corporate Social Responsibility

    • The law says corporations have a fiduciary responsibility (fiduciary = the highest standard of loyalty and trust owed by agents to principles) to their shareholders, who are the legal owners of the corporation.

  • Nonprofit Organizations (NPOs)

    • Both not-for-profit and for-profit corporate entities must have board members, steering committee members, or trustees who owe the organization a fiduciary duty of loyalty and trust.

  • Landrum-Griffin Act

    • Declare that every union officer must act as a fiduciary in handling the assets and conducting the affairs of the union.

  • Profit and Stakeholders

    • In the traditional view of the firm, the stockholders are the owners of the company, and the firm has a binding fiduciary duty to put their needs first and to increase value.

  • Conflicts of Interest

    • An example of using a third-party to establish an 'arm's length' or fair transaction would be where a corporation that leases an office building that is owned by the CEO might get an independent evaluation showing what the market rate is for such leases in the locale, to address the conflict of interest that exists between the fiduciary duty of the CEO (to the stockholders, by getting the lowest rent possible) and the personal interest of that CEO (to maximize the income that the CEO gets from owning that office building by getting the highest rent possible).