A duty that is imposed upon a person by another (with the former’s acceptance and willingness) due to the former’s position of trust and confidence as to the latter. A fiduciary takes certain actions in the best interest the appointing party (whether a person or entity). Examples of fiduciary duties include duty of due care, confidentiality, prudence, loyalty, good faith, and disclosure.
The fiduciary relationship requires full disclosure of information in the hands of the fiduciary including performance results (profits, losses, etc.) arising from the direct engagement of the fiduciary in the assigned duty, and the ability to implement certain measures to avoid overlapping and conflicts of interest.
For example, fiduciary duty may involve the relationship between an attorney (lawyer) and a client, a trustee and an entity, or a guardian and a ward.
