Financial Transaction and Fiduciary Obligation: Ethics, Economics or Commingled Commitment?
Financial transactions and fiduciary obligations are simply intertwined. Fiduciaries are subject to the principle of fidelity. It appears, at times at least, public trust in fiduciary commitments is declining as a result of fiduciaries’ selective reporting of financial events and the existence of co...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
UUM Press
2012
|
| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/25003/1/IJBF%209%204%202012%201%2027.pdf |
| _version_ | 1803628848007348224 |
|---|---|
| author | Palliam, Romila Lee, Caldwell Ghosh, Dilip K. |
| author_facet | Palliam, Romila Lee, Caldwell Ghosh, Dilip K. |
| author_sort | Palliam, Romila |
| collection | UUM |
| description | Financial transactions and fiduciary obligations are simply intertwined. Fiduciaries are subject to the principle of fidelity. It appears, at times at least, public trust in fiduciary commitments is declining as a result of fiduciaries’ selective reporting of financial events and the existence of conflicts when fiduciaries have selfish motives: motives being not always to maximize the trusting party’s value. It is the agency problem. This work attempts to enunciate that commitments and fiduciary obligations emanating from initial financial transactions are not to be violated or ignored as a matter of policy or practice. The questions that arise are: Should a fiduciary be obliged to guarantee a certain outcome for the counter-party, and should a fiduciary be held accountable to a certain type of outcome? We examine what the guidelines are or should be put in place. Initially, under the garb of some socio-religions edicts-cum-dicta, and then under the well-known economic analytics, we make our points and move the view to the forefront. |
| first_indexed | 2024-07-04T06:28:28Z |
| format | Article |
| id | uum-25003 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:28:28Z |
| publishDate | 2012 |
| publisher | UUM Press |
| record_format | dspace |
| spelling | uum-250032018-10-25T00:21:43Z https://repo.uum.edu.my/id/eprint/25003/ Financial Transaction and Fiduciary Obligation: Ethics, Economics or Commingled Commitment? Palliam, Romila Lee, Caldwell Ghosh, Dilip K. HG Finance Financial transactions and fiduciary obligations are simply intertwined. Fiduciaries are subject to the principle of fidelity. It appears, at times at least, public trust in fiduciary commitments is declining as a result of fiduciaries’ selective reporting of financial events and the existence of conflicts when fiduciaries have selfish motives: motives being not always to maximize the trusting party’s value. It is the agency problem. This work attempts to enunciate that commitments and fiduciary obligations emanating from initial financial transactions are not to be violated or ignored as a matter of policy or practice. The questions that arise are: Should a fiduciary be obliged to guarantee a certain outcome for the counter-party, and should a fiduciary be held accountable to a certain type of outcome? We examine what the guidelines are or should be put in place. Initially, under the garb of some socio-religions edicts-cum-dicta, and then under the well-known economic analytics, we make our points and move the view to the forefront. UUM Press 2012 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/25003/1/IJBF%209%204%202012%201%2027.pdf Palliam, Romila and Lee, Caldwell and Ghosh, Dilip K. (2012) Financial Transaction and Fiduciary Obligation: Ethics, Economics or Commingled Commitment? International Journal of Banking and Finance (IJBF), 9 (4). pp. 1-27. ISSN 1675-7227 http://ijbf.uum.edu.my/index.php/previous-issues/148-the-international-journal-of-banking-and-finance-ijbf-vol-9-no-4-2012 |
| spellingShingle | HG Finance Palliam, Romila Lee, Caldwell Ghosh, Dilip K. Financial Transaction and Fiduciary Obligation: Ethics, Economics or Commingled Commitment? |
| title | Financial Transaction and Fiduciary Obligation: Ethics, Economics or Commingled Commitment? |
| title_full | Financial Transaction and Fiduciary Obligation: Ethics, Economics or Commingled Commitment? |
| title_fullStr | Financial Transaction and Fiduciary Obligation: Ethics, Economics or Commingled Commitment? |
| title_full_unstemmed | Financial Transaction and Fiduciary Obligation: Ethics, Economics or Commingled Commitment? |
| title_short | Financial Transaction and Fiduciary Obligation: Ethics, Economics or Commingled Commitment? |
| title_sort | financial transaction and fiduciary obligation ethics economics or commingled commitment |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/25003/1/IJBF%209%204%202012%201%2027.pdf |
| work_keys_str_mv | AT palliamromila financialtransactionandfiduciaryobligationethicseconomicsorcommingledcommitment AT leecaldwell financialtransactionandfiduciaryobligationethicseconomicsorcommingledcommitment AT ghoshdilipk financialtransactionandfiduciaryobligationethicseconomicsorcommingledcommitment |