{"id":3600,"date":"2017-07-10T13:23:15","date_gmt":"2017-07-10T18:23:15","guid":{"rendered":"http:\/\/synapse9.com\/signals\/?p=3600"},"modified":"2017-09-30T12:41:21","modified_gmt":"2017-09-30T17:41:21","slug":"fiduciary-duty-not-to-be-misleading","status":"publish","type":"post","link":"https:\/\/synapse9.com\/signals\/fiduciary-duty-not-to-be-misleading\/","title":{"rendered":"the Fiduciary Duty for Business Speech – to Not Be Misleading"},"content":{"rendered":"

We Need Business to Honor Its Fiduciary Duties<\/h3>\n

Just Talking and Writing About it Would Put it on the Agenda!<\/h3>\n
<\/a>
A fiduciary represents the interests of others in a way that is NOT MISLEADING.<\/figcaption><\/figure>\n

–\u00a0Wikipedia\/fiduciary<\/a><\/strong><\/h4>\n
\n

\u201cIn such a relation good conscience requires one to act at all times for the sole benefit and interests of another<\/a>, with loyalty to those interests.\u201c<\/h4>\n

\u201cA fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence.[1]\u201d<\/h4>\n

\u201cA\u00a0<\/strong>fiduciary duty[2]\u00a0is the highest\u00a0standard of care<\/a>\u00a0at either equity or law.\u201d<\/h4>\n<\/blockquote>\n

– The wide implications relations based on fiduciary trust – JLH<\/strong><\/h4>\n
    \n
  1. Professionals making decisions for others have a duty to act in the client’s best interests, to the best of the fiduciary’s\u00a0<\/em>ability, as the basis of trusting the fiduciary’s services.<\/em><\/li>\n
  2. The law doesn\u2019t limit \u201cbest interests\u201d of others to short term financial gain, leaving open all other interests everyone has a right to, such as not being misled, living sustainably, respecting due process and receiving justice. <\/em><\/li>\n
  3. What has changed in the modern world is that we face more threats and know more about them, so now we can hold our professionals responsible, demanding our universal human interests be respected as their fiduciary duty. <\/em><\/li>\n
  4. Putting this on the human rights agenda would only take talking and writing about it. <\/em><\/li>\n<\/ol>\n

    – Current Law: The Fiduciary Duty for investors[i]<\/a><\/strong><\/h4>\n

    \u201cWhenever you are dealing with someone to whom you will entrust your money, such as\u00a0a\u00a0registered investment adviser<\/a>\u00a0or a\u00a0bank trust department<\/a>, it is nice to know that, in the United States, they owe you what is known as a\u00a0fiduciary duty<\/strong>. \u00a0This is not to be taken lightly because, under the American legal system, a fiduciary duty is the highest duty owed to another person. \u00a0It requires the fiduciary (the person with the obligation) to put the interest of the principal (the person to whom they owe the fiduciary duty) above their own.\u201d<\/p>\n

    \u201cThis requirement to act in\u00a0their best interest includes disclosing any conflicts of interest that may arise so they can be known ahead of time, leveling the playing field. \u00a0Breaching the fiduciary duty can result in draconian punishments, including being barred from employment in certain fields, being banned from working with certain types of securities, being forced to pay significant civil and criminal penalties, the loss of employment, and, in some cases, felony conviction with accompanying jail time. \u00a0To put it bluntly, the fiduciary duty has teeth.\u201d \u00a0 \u00a0 \u00a0[see source for rest of article]<\/p><\/blockquote>\n

    – What is \u201cFiduciary Duty\u201d,\u2026 \u201cBusiness Duty\u201d[ii]<\/a><\/strong><\/h4>\n

    \u201cA \u201cfiduciary duty\u201d is required of a person who manages money, investments, or other property on behalf of another person. When the situation involves a board of directors managing a corporation, the fiduciary duty the board has to the corporation\u2019s shareholders and investors is known as a \u201cbusiness duty.\u201d A person who has a fiduciary or business duty is known as a \u201cfiduciary.\u201d<\/p>\n

    \u201cA fiduciary duty requires more than the ordinary\u00a0reasonable care <\/strong>that appears in most\u00a0personal injury<\/strong>\u00a0and\u00a0tort<\/strong>\u00a0cases. Fiduciary duties are generally split into two categories: the duty of loyalty and the duty of care. In some cases, board members may also have a duty to disclose information. They also have a duty to avoid\u00a0conflicts of interest<\/strong>.\u201d<\/p>\n

    \u201cThe duty of loyalty requires the person who has it to handle money with the best interests of its owner in mind. The fiduciary must put the owner\u2019s interests before his or her own and may not profit from managing the owner\u2019s assets without the owner\u2019s consent.\u201d<\/p>\n

    \u201cIn a business situation, the duty of loyalty requires the board of directors to run the corporation in the best interests of the shareholders. Directors have a duty not to let their personal interests conflict with those of the corporation.\u201d \u00a0 \u00a0 \u00a0 \u00a0[see source for rest of article]<\/p><\/blockquote>\n

    \u00a0<\/strong><\/p>\n

    \u00a0<\/strong>Note: there is no limit to what \u201cbest interests\u201d a fiduciary needs to serve,
    \n<\/strong><\/h4>\n

    \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a01. There’s only a limit on their ability to serve them, and<\/strong><\/h4>\n

    \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a02. All\u00a0“best interests” would require not being misleading<\/strong><\/h4>\n

     <\/p>\n

    [i]<\/a> Joshua Kennon<\/a> 2016 \u201cThe Balance\u201d Fiduciary Duty for Investors<\/a><\/p>\n

    [ii]<\/a> Rottenstein Law Library 2017 What is Fiduciary Duty\u2026<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    We Need Business to Honor Its Fiduciary Duties Just Talking and Writing About it Would Put it on the Agenda! –\u00a0Wikipedia\/fiduciary \u201cIn such a relation good conscience requires one to act at all times for the sole benefit and interests of another, with loyalty to those interests.\u201c \u201cA fiduciary is someone who has undertaken to … Continue reading the Fiduciary Duty for Business Speech – to Not Be Misleading<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","footnotes":""},"categories":[3,4,9,15,16],"tags":[],"class_list":["post-3600","post","type-post","status-publish","format-standard","hentry","category-among-best-2","category-teaching","category-policy","category-trans","category-whattodo"],"_links":{"self":[{"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/posts\/3600","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/comments?post=3600"}],"version-history":[{"count":13,"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/posts\/3600\/revisions"}],"predecessor-version":[{"id":3629,"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/posts\/3600\/revisions\/3629"}],"wp:attachment":[{"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/media?parent=3600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/categories?post=3600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/synapse9.com\/signals\/wp-json\/wp\/v2\/tags?post=3600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}