Agent vs. Fiduciary — What's the Difference?

May not have fiduciary duties.

Subject to higher legal duties and standards.

Acts as an intermediary in transactions.

Must avoid conflicts of interest and act in the best interest of another.

A person authorized to act on another's behalf.

Often responsible for managing money or property.

Represents another in business or personal matters.

A person who holds a legal or ethical relationship of trust.

Operates under the control of another.

Can be trustees, advisors, or executives.

A person who acts on behalf of another person or group

A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person.

A person or thing that takes an active role or produces a specified effect

Of or relating to a duty of acting in good faith with regard to the interests of another

One that acts or has the power or authority to act.

Of or being a trustee or trusteeship.

One empowered to act for or represent another

Held in trust.

A means by which something is done or caused; an instrument.

Of or consisting of fiat money.

A force or substance that causes a change

Of, relating to, or being a system of marking in the field of view of an optical instrument that is used as a reference point or measuring scale.

A representative or official of a government or administrative department of a government

One, such as an agent of a principal or a company director, who has a duty of acting in good faith with regard to the interests of another.

A spy.

(legal) Relating to an entity that owes to another good faith, accountability and trust, often in the context of trusts and trustees.

(Linguistics) The argument that expresses the means or cause of an action or event described by a phrase or clause. The noun John is the agent in the clause John threw the ball.

Pertaining to paper money whose value depends on public confidence or securities.

To act as an agent or representative for

(non-standard) Accepted as a trusted reference such as a point, value, or marker; fiducial.

To act as an agent or representative.

(legal) One who holds a thing in trust for another.

One who exerts power, or has the power to act

(theology) One who depends for salvation on faith, without works; an antinomian.

One who acts for, or in the place of, another (the principal), by that person's authority; someone entrusted to do the business of another

Involving confidence or trust; confident; undoubting; faithful; firm; as, in a fiduciary capacity.

A person who looks for work for another person

Holding, held, or founded, in trust.

Someone who works for an intelligence agency

One who holds a thing in trust for another; a trustee.

An active power or cause or substance; something (e.g. biological, chemical, thermal, etc.) that has the power to produce an effect

One who depends for salvation on faith, without works; an Antinomian.

(computing) In the client-server model, the part of the system that performs information preparation and exchange on behalf of a client or server. Especially in the phrase “intelligent agent” it implies some kind of autonomous process which can communicate with other agents to perform some collective task on behalf of one or more humans.

A person who holds assets in trust for a beneficiary;

(grammar) The participant of a situation that carries out the action in this situation, e.g. "the boy" in the sentences "The boy kicked the ball" and "The ball was kicked by the boy".

Relating to or of the nature of a legal trust (i.e. the holding of something in trust for another);

(gambling) A cheat who is assisted by dishonest casino staff.

Acting; - opposed to patient, or sustaining, action.

One who exerts power, or has the power to act; an actor.

One who acts for, or in the place of, another, by authority from him; one intrusted with the business of another; a substitute; a deputy; a factor.

An active power or cause; that which has the power to produce an effect, such as a physical, chemical, or medicinal agent; as, heat is a powerful agent.

A chemical substance having biological effects; a drug.

An active and efficient cause; capable of producing a certain effect;

A substance that exerts some force or effect

A representative who acts on behalf of other persons or organizations

A businessman who buys or sells for another in exchange for a commission

Any agent or representative of a federal agency or bureau

The semantic role of the animate entity that instigates or causes the hapening denoted by the verb in the clause

An agent has the legal obligation to act within the scope authorized by the principal and to adhere to the agreement that governs the agency relationship.

An agent must act within the authority granted by their principal and typically should not make decisions without the principal’s consent unless expressly authorized to do so.

A fiduciary can make wide-ranging decisions concerning the management of assets, investments, or other interests that directly affect the welfare of the principal, as long as these decisions adhere to the duty of loyalty and care.

A fiduciary relationship begins through a formal agreement or is established by law, such as in cases where trust or confidence is inherent in the type of relationship, like between a lawyer and client.

Yes, a lawyer is a fiduciary as they have an ethical obligation to act in the best interests of their clients, maintain confidentiality, and avoid conflicts of interest.

Yes, corporate officers and directors have fiduciary duties to the shareholders to act in the best interests of the corporation and its investors.

A breach of fiduciary duty can lead to legal actions, financial restitution, and punitive damages, reflecting the serious nature of a fiduciary's responsibilities.

Agents are accountable for fulfilling specific directives, while fiduciaries are accountable not only for following directives but also for the overarching responsibility of acting in the best interests of the principal.

Fiduciaries might be compensated through a fee structure that aligns with the interests of their principals, such as a percentage of assets under management, whereas agents might receive a commission based on transactions.

Disputes are typically resolved through mediation, arbitration, or court proceedings, depending on the severity of the breach and the terms of the fiduciary agreement.

No, the level of authority an agent has is defined by the terms of the agreement with their principal, which can vary widely depending on the scope of their duties and the nature of their tasks.

Yes, fiduciaries can be held personally liable for breaches of duty, especially if their actions result in financial losses or damages to the principal.

Actions taken by an agent outside their authorized powers can be repudiated by the principal, and the agent may be held personally liable for any resulting damages.

Verification can involve reviewing the legal documentation that establishes the fiduciary relationship or checking professional credentials and licenses required for fiduciary roles like financial advisors or trustees.