Fiduciary Negligence

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.

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  • 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 — /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

  • Dishonest assistance — Dishonest assistance, or knowing assistance, is a type of third party liability under trust law. It is usually seen as one of two liabilities established in Barnes v Addy,[1] the other one being knowing receipt. To be liable for dishonest… …   Wikipedia

  • insurance — /in shoor euhns, sherr /, n. 1. the act, system, or business of insuring property, life, one s person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a… …   Universalium

  • South African contract law — is essentially a modernised version of the Roman Dutch law of contract, [1] which is itself rooted in Roman law. In the broadest definition, a contract is an agreement entered into by two or more parties with the serious intention of creating a… …   Wikipedia

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

  • duty of care — see duty Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. duty of care …   Law dictionary

  • Mistake (contract law) — In contract law, a mistake is an erroneous belief, at contracting, that certain facts are true. It can be argued as a defence, and if raised successfully can lead to the agreement in question being found void ab initio or voidable, or… …   Wikipedia

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