fiduciary
fih-DOO-shee-air-ee
/fɪˈduːʃieri/
Involving trust, especially with regard to the relationship between a trustee and a beneficiary.
The highest standard of care in equity or law; a fiduciary must put the client's interests above their own.
The story behind the word. From the Latin 'fiducia' (trust), which also gives us 'confidence' and 'fidelity'. It describes a person who is 'entrusted' with the care of another's assets.
Word relationships
- trustee: A trustee is a person who holds property for another; fiduciary is the adjective describing that duty or the person themselves.
Commonly confused with
- beneficiary: The fiduciary is the one who manages the money; the beneficiary is the one who receives the benefit.
Word family
- fiducial (adjective): Founded on trust or confidence.
Collocations
- fiduciary duty
- fiduciary responsibility
- fiduciary relationship
Example sentences
- "As a fiduciary, the financial advisor is legally obligated to recommend the best products for the client, not the ones that pay the highest commission." Investment Law
Memory hook
Fiduciary: 'Feed-you-share-y'. A person who manages the 'food' (assets) must share the benefits with you, not keep them. Trust with money.
When not to use
Do not use for casual friendships; it is a specific legal and professional relationship.
Fun facts
- Directors of a corporation have a fiduciary duty to the shareholders, meaning they can be sued if they act against the company's best interests.
Related words
Explore more words
stewardship, fidelity, duty, liability, entrust, trustworthy
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