Fiduciary Abuse

Describes a situation in which an individual who is legally appointed to manage another party's assets uses his or her power to benefit financially in an unethical or illegal fashion.

Fiduciary abuse can be practiced by agents such as a financial advisor, or power of attorneys. Examples include a financial advisor borrowing funds from client's account in order to take speculative positions in securities, or even a close family member (acting as power of attorney) misrepresenting a legally incapacitated family member as a way to steal assets.

People can protect themselves from fiduciary abuse by taking an active role in their money management or by setting up an irrevocable trust.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Insider trading — is the trading of a corporation s stock or other securities (e.g. bonds or stock options) by individuals with potential access to non public information about the company. In most countries, trading by corporate insiders such as officers, key… …   Wikipedia

  • Elder law (Massachusetts) — See generally Elder law (U.S.).Elder law denotes the law, regulations, and prevailing good legal practices applicable to a range of issues affecting individuals aged 65 and over. The subject matter of elder law arises from careful legal analysis… …   Wikipedia

  • Community Chapel and Bible Training Center — Formation 1967 Extinction 1988 Type Independent Pentecostal Christian Location Burien, Washington Official languages …   Wikipedia

  • Re Saul D Harrison & Sons plc — [1995] 1 BCLC 14, [1994] BCC 475, is a UK company law case on an action for unfair prejudice under s.459 Companies Act 1985 (now s.994 Companies Act 2006). It was decided in the Court of Appeal and deals with the concept of members of a business… …   Wikipedia

  • Watergate scandal — Watergate redirects here. For other uses, see Watergate (disambiguation). Watergate …   Wikipedia

  • United Kingdom company law — Beside the River Thames, the City of London is a global financial centre. Within the Square Mile, the London Stock Exchange lies at the heart of the United Kingdom s corporations. United Kingdom company law is the body of rules that concern… …   Wikipedia

  • trust — A legal entity created by a grantor for the benefit of designated beneficiaries under the laws of the state and the valid trust instrument. The trustee holds a fiduciary responsibility to manage the trust s corpus assets and income for the… …   Black's law dictionary

  • Mediation — For the Wikipedia mediation process for resolving disputes, see Wikipedia:Mediation. For other uses, see Mediation (disambiguation) …   Wikipedia

  • Fundamentalist Church of Jesus Christ of Latter Day Saints — infobox Organization name = Fundamentalist Church of Jesus Christ of Latter Day Saints image border = size = caption = The FLDS temple at the YFZ Ranch near Eldorado, Texas msize = mcaption = abbreviation = motto = formation = 1932 extinction =… …   Wikipedia

  • Corporate promoter — For other uses of this word, see promoter. A corporate promoter (also projector ) is a person who solicits people to invest money into a corporation, usually when it is being formed. An investment banker, an underwriter, or a stock promoter may,… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.