What is Fiduciary Duty?
Fiduciary duty is a legal obligation that requires a person or entity to act in the best interests of another party, such as an employer, client, or investor. The fiduciary has a duty to put the interests of the other party ahead of their own and to act with honesty, loyalty, and good faith.
Fiduciary duties can arise in many contexts, including:
Breaching a fiduciary duty can have serious legal and financial consequences, and can result in damages, fines, and even criminal charges. Fiduciaries who breach their duties may be liable for any harm or losses suffered by the other party as a result of their actions.
In summary, a fiduciary duty is a high standard of ethical conduct that requires a person or entity to put the interests of another party first and to act with honesty, loyalty, and good faith in all of their dealings.
Fiduciary duty is a legal obligation that requires a person or entity to act in the best interests of another party, such as an employer, client, or investor. The fiduciary has a duty to put the interests of the other party ahead of their own and to act with honesty, loyalty, and good faith.
Fiduciary duties can arise in many contexts, including:
- Trusts and estates: Trustees and executors have a fiduciary duty to manage the assets of a trust or estate for the benefit of the beneficiaries.
- Corporate governance: Directors and officers of a corporation have a fiduciary duty to act in the best interests of the corporation and its shareholders.
- Financial advisors: Financial advisors and brokers have a fiduciary duty to act in the best interests of their clients and to provide impartial investment advice.
- Legal and medical professionals: Lawyers and doctors also have a fiduciary duty to act in the best interests of their clients or patients.
Breaching a fiduciary duty can have serious legal and financial consequences, and can result in damages, fines, and even criminal charges. Fiduciaries who breach their duties may be liable for any harm or losses suffered by the other party as a result of their actions.
In summary, a fiduciary duty is a high standard of ethical conduct that requires a person or entity to put the interests of another party first and to act with honesty, loyalty, and good faith in all of their dealings.