click below
click below
Normal Size Small Size show me how
Ch1-2 Fiduciary Duty
Fiduciary Duty defintions
Term | Definition |
---|---|
Care | A licensee must use their skill and expertise to the advantage of their principal. |
Loyalty | Requires an agent to place the interests of their principal above all others, including the agent's own. |
Accounting | Able to account for all funds received from or on behalf of the principal. |
Commingling | The misdeposit of trust funds into any account that is not a designated trust fund. |
Conversion | The misuse of trust funds by converting the funds of the client to personal use. |
Obedience | Requires agents to act in good faith, at all times, according to the instructions and wishes of the principal, within legal limits. |
Disclosure | Requires the agent to keep the principal informed of all material facts that the agent knows or should know that might impact the principal's choosing of a particular course of action, regardless of being favorable or unfavorable. |
Fiduciary | Involving trust, especially with regard to the relationship between a trustee and a beneficiary. |