fiduciary

[fi-doo-shee-er-ee, -dyoo-]

noun

plural

fiduciaries 

1. Law.,  a person to whom property or power is entrusted for the benefit of another.

   All investment advisors registered with the Securities and Exchange Commission (SEC) must act as fiduciaries.

adjective

1. Law.,  of or relating to the relationship of trust and good faith between a fiduciary and the person for whom the fiduciary acts.

   The executor of a will has a fiduciary duty to act in the best interest of the beneficiary.

   The banks do not assume any financial responsibility—they act in a fiduciary capacity only.

   The American Medical Association said that physicians have a fiduciary responsibility to patients.

2. depending on public confidence for value or currency, as fiat money.

fiduciary

/ fɪˈduːʃɪərɪ /

noun

1. a person bound to act for another's benefit, as a trustee in relation to his beneficiary

adjective

1. 1. having the nature of a trust

   2. of or relating to a trust or trustee

Other Word Forms

• fiduciarily adverb
• nonfiduciary adjective

Word History and Origins

Origin of fiduciary¹

First recorded in 1585–95; from Latin fīdūciārius “holding on trust; a trustee,” equivalent to fīdūci(a) “trust” + -ārius -ary

Word History and Origins

Origin of fiduciary¹

C17: from Latin fīdūciārius relating to something held in trust, from fīdūcia trust; see _fiducial

Example Sentences

Talk to a fiduciary about tax efficiency, using tax-loss harvesting during swings and, keeping in step with your optimism, getting a handle on the kind of capital gains you can expect to pay.

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The board, Comer alleged, is sidestepping the fundamental fiduciary obligation to protect “the integrity of the museum, despite our best intentions.”

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Some, but not all, money managers are fiduciaries – professionals who have to act in their clients’ best interest under the Investment Advisers Act of 1940.

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Furthermore, not all money managers are fiduciaries — professionals who have to act in their client’s best interest under the Investment Advisers Act of 1940.

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The crypto companies seeking charters say they would provide fiduciary services to customers whose digital assets they hold and issue stablecoins, a cryptocurrency designed to maintain a fixed value.

Read more on The Wall Street Journal