If you have any questions arising from this Need to Know please do not hesitate to contact our Wills, Trusts and Inheritance Disputes Team. Our team is recognised for our expertise in this field by the legal directories: The Legal 500 and Chambers & Partners. We also often advise on complex and cross-jurisdictional issues, and regularly work alongside other intermediaries based offshore. We act for trustees, executors, personal representatives and for individuals claiming against estates, trustees or other parties. A proprietary remedy enabling the claimant to assert rights against property in the in the defendant’s possession may also available. What are the ramifications for a fiduciary acting in breach of duty?Īny action taken in breach of a fiduciary duty can be set aside even if there has been no resulting loss. that the beneficiary/beneficiaries was/were aware and authorised the action taken by the trustee). The fiduciary breached a duty to their client. Can breach of a fiduciary duty be avoided?Ī fiduciary may be able to avoid liability for breach of fiduciary duty by seeking the informed consent of his principal (i.e. What Constitutes a Breach of Fiduciary Duty The four elements to a breach of fiduciary duty are: The involved parties had a fiduciary relationship. There is no overlap.Ī trustee’s specific fiduciary duties towards a beneficiary include not to profit from the trust and avoiding a conflict of interests. All trustees are fiduciaries but not all fiduciaries are trustees. Why have fiduciary duties?įiduciary duties are required in order to prevent unwanted conduct on the part of the fiduciary.įiduciary duties are separate to and additional to a trustee’s duties. A fiduciary must act in good faith he must not make a profit out of his trust he must not place himself in a position where his duty and his interest may conflict he may not act for his own benefit or the benefit of a third person without the informed consent of his principal”.īristol and West Building Society v Mothew Īll trustees have fiduciary duties such that they are placed in a position, which demands loyalty and good faith to the beneficiary. The principal is entitled to the single-minded loyalty of his fiduciary.

The distinguishing obligation of a fiduciary is the obligation of loyalty. A fiduciary is someone who has undertaken to act for or on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence.

Breach of fiduciary duty