Fiduciary Negligence

A professional malpractice in which a person fails to honor his or her fiduciary obligations and responsibilities. Fiduciary negligence occurs when a fiduciary fails to act on breaches of fiduciary duty when his or her actions could have prevented the infractions.

Suppose that a company's shareholders entrust their funds with the firm's management. If the company's employees are embezzling money or expensing funds on lavish dinners and gifts and the chief financial officer fails to check the financial accounts, allowing such infractions to go unnoticed, that officer would be considered negligent and held accountable even if he or she did not benefit from these actions.


Investment dictionary. . 2012.

Look at other dictionaries:

  • fiduciary — /fad(y)uwsh(iy)ary/ The term is derived from the Roman law, and means (as a noun) a person holding the character of a trustee, or a character analogous to that of a trustee, in respect to the trust and confidence involved in it and the scrupulous …   Black's law dictionary

  • fiduciary bond — noun : a surety bond filed by a fiduciary (as the administrator of an estate) to guarantee faithful performance of his duties * * * a bond filed by a fiduciary administering an estate as surety. * * * fiduciary bond, a bond issued to insure… …   Useful english dictionary

  • Bristol and West Building Society v. Mothew — [1998] Ch 1 is a leading English trust law and professional negligence case, concerning a solicitor s duty of care and skill, and the nature of fiduciary duties.FactsMr Mothew was a solicitor who had acted for both Bristol and West Building… …   Wikipedia

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  • Colin Gwyer & Associates Ltd v London Wharf (Limehouse) Ltd — Court High Court, Chancery Division Date decided 13 December 2002 Citation(s) [2003] BCC …   Wikipedia

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  • Politician — A politician (from Greek polis ) is an individual who is involved in influencing public decision making through the influence of politics or a person who influences the way a society is governed through an understanding of political power and… …   Wikipedia

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