Breach Of Fiduciary Duty

A person that is legally tasked with managing the money of another individual is said to have “fiduciary duties” to the individual whose money they are managing.  In the investment world, any individual or entity entering into an agreement with a customer that involves confidence, reliance, and trust to act in the best financial interest of that customer.  Additionally, the named fiduciary must be aware of the responsibilities and trust that a consumer is placing in them to act because of their professional experience and discretion. 

Ethics and Responsibility of Duties

Aside from brokers and financial advisors, other common individuals that accept fiduciary responsibilities include corporate board members, trustees, attorneys, executors, traders, and fund managers. According to the duty that a fiduciary owes their client, breach of fiduciary responsibility proves to be an illegal violation of the trust placed in them by their customers.  At these times, legal claims may be taken on the grounds of breach of fiduciary duty.  For example, fiduciary responsibility law prohibits a fiduciary from operating in any manner besides in the best interests of a client.  Additionally, the laws prohibit a fiduciary from acting for their own personal benefit, or operating in manner that does not involve due diligence, due care, honesty, and full disclosure.  Stringent laws and protocol surrounding the fiduciaries relationship are in place to protect investors and other customers from losses due to dishonest practices.

Getting Legal Help

If you have lost money due fiduciary fraud, a securities law attorney can help you find out exactly what your legal rights are, and if beneficial, can help you file claims against negligent parties to recoup losses. 

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