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Fiduciary duty is a legally binding responsibility of a professional to act in the client’s best interests. If they have agreed to act as a fiduciary, they cannot act in the best interests of ...
The Court of Chancery, which governed fiduciary relations in England prior to the Judicature Acts. A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for example ...
Under the Prudent Investor Act standard, a fiduciary would not be held liable for individual investment losses, so long as the investment, at the time of acquisition, is consistent with the overall portfolio objectives of the account. Diversification is explicitly required as a duty for prudent fiduciary investing.
The duty of loyalty is often called the cardinal principle of fiduciary relationships, but is particularly strict in the law of trusts. [1] In that context, the term refers to a trustee's duty to administer the trust solely in the interest of the beneficiaries, and following the terms of the trust.
The Labor Department tried to expand the fiduciary rule in 2016, under the administration of Democratic President Barack Obama. That effort was blocked by the 5th U.S. Circuit Court of Appeals in ...
A fiduciary must act solely in the client’s best interest, often requiring them to avoid conflicts of interest entirely. In contrast, the best interest standard allows for conflicts so long as ...
The prudent man rule requires that each investment be judged on its own merits and that speculative or risky investments must be avoided. Under the prudent man rule, certain types of investments, such as second mortgages or new business ventures, are viewed as intrinsically speculative and therefore prohibited as fiduciary investments.
Continue reading ->The post What Fiduciary Duty Means (and What It Doesn't) appeared first on SmartAsset Blog. Advisors who are required to adhere to a fiduciary duty are held to different ethical ...