A-Z Popular Blog Top Search »
Business Risks

What is a Fiduciary Duty?

 , updated on
Fiduciary duty is a legal obligation to act solely in another party's interests. It is established by taking on professional or personal responsibilities. For example, a corporate officer has a fiduciary duty to shareholders and a doctor has a fiduciary duty to a patient. The term fiduciary duty has also been interpreted in some jurisdictions to extend to family and other personal duties.
A fiduciary relationship is typically created when a person or group that is in a position of vulnerability vests trust, reliance and good faith in the representation, advice and protection of a professional. The parties being represented are known as the principle and the representative is known as the fiduciary.
The duty of a fiduciary to a principle may include:
- undivided loyalty
- representing the interests of the principle in good faith
- acting without self-interest
- confidentiality
- exercising care, due diligence and prudence
- protecting money and assets
- avoiding conflicts of interest
- promptly informing the principle of material information
- maintaining detailed records and accounts
- not to profit without the knowledge and consent of the principle
Overview: Fiduciary Duty
Definition (1)
A legal obligation to act solely in another party's interests in the context of a role or position.
Definition (2)
A duty to act with diligent undivided loyalty to protect the interests of a principle.
Related Concepts

Business Metrics

This is the complete list of articles we have written about business metrics.
Attach Rate
Budget Variance
Capability Rate
Churn Rate
Compliance Rate
Cost Effectiveness
Customer Satisfaction Rate
Cycle Time
Error Rate
Gross Margin
IT Metrics
Marketing Metrics
On-Time Performance
Run Rate
Sales Metrics
Sales Volume
Share Of Wallet
Story Points
Takt Time
Time To Market
Time To Volume
Turnaround Time
Vanity Metrics
More ...
If you enjoyed this page, please consider bookmarking Simplicable.

Conflict Of Interest

A few examples of conflict of interest.

Chinese Wall

An overview of Chinese walls as a compliance tool.

Regulatory Capture

An overview of regulatory capture.

Self Dealing

An overview of self-dealing with examples.

Perverse Incentives

An overview of perverse incentives.


The definition of duty with examples.

Crony Capitalism

The definition of crony capitalism with examples.


An overview of cronyism with an illustrative example.

Dual Agency

The definition of dual agency with examples.

Professional Ethics

The definition of professional ethics with examples.


Simplicable is a modern encyclopedia that has been updated daily since 2010.

Business Theory

A list of interesting business theories.

Knowledge Work

A definition of knowledge work with examples.

Office Politics

A list of social processes, absurdities and strategies related to office politics.

Product Development

A guide to product development.

Types Of Knowledge

The differences between types of knowledge.

Trough Of Sorrow

An overview of the trough of sorrow.

Business Models

A list of common business models.


A list of key marketing strategies.

Competitive Advantage

A few sources of competitive advantage for businesses.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map