Question 1

What is a fiduciary?

Accepted Answer

A fiduciary is a person who is required to act for the benefit of another person, the beneficiary, on all matters within the scope of their relationship. Fiduciary employees owe duties that go beyond the duty of fidelity owed by regular employees. Fiduciary employees owe their employers heightened duties, including a duty of loyalty, a duty of good faith, and a duty of honesty. They are expected to prioritize their employer’s best interests above their own. Further, fiduciary employees are obligated to avoid conflicts between their self-interest and their employer’s interests. Fiduciary duties may be found to continue after the termination of the employment relationship.

Question 2

Who is a fiduciary employee?

Accepted Answer

All employees are not fiduciaries, as reflected in the Court’s decision in Canadian Industrial Distributors Inc. v. Dargue, 1994 CanLII 7319 (ON SC), where the Court stated, “it is clear that the generic relationship between employer and employee does not per se give rise to fiduciary responsibilities.” The law does not lightly impose a fiduciary duty on every employee or manager due to the demanding nature of the duties required of fiduciaries. Rather, determining whether an employee is a fiduciary requires a contextual analysis of the nature of the employee’s duties and the relationship between the employee and employer.

Monthly Archives: August 26, 2021

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