Definition - What does Fiduciary mean?

A fiduciary is a relationship, either ethical or legal, that establishes trust between two or more parties in regards to money, property, or any other form of assets. Depending on the context, fiduciary can have several meanings, but they all pertain to relationships in which one party takes care of the money or assets of the other party(s).

Justipedia explains Fiduciary

In the context of trust laws, trustees are regarded as fiduciaries, as they manage and/or oversee money or assets for the benefit of the beneficiaries of the trust (not for personal gain). In the context of company laws, the board and managers of a company have a "fiduciary duty" to act in the best interest of their shareholders. A fiduciary can also refer to a loan granted by one person to another solely on the basis of trust.

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