Fiduciary Duty

Fiduciary Duty and Intermediated Securities Report – A Bombshell at the End

The Law Commission was asked to undertake a review of how the law of fiduciary duties applies to investment intermediaries and to evaluate whether the law works in the interests of end investors. This followed a recommendation in the Kay Review undertaken by Professor John Kay where he attacked the excessive "intermediation" in financial markets, the lack of clarity of responsibility, the difficulties trustees have in interpreting their duties and related factors that seemed to be undermining the ethics of financial ...

Fiduciary Duty Consultation – no major changes proposed

The Law Commission is running a public consultation on the "Fiduciary Duties of Investment Intermediaries". This was prompted by a recommendation in the Kay Review that examined the issue of "short-termism" in business and investment decisions. It suggested that this area should be examined. One question posed was whether the legal concept of "fiduciary duty" should be extended so that investment intermediaries had clearer moral responsibilities to their clients.For example, trustees of pension funds have a general legal obligation to act ...
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