When one is placed in a leadership position in an organisation, there exist a high level of fiduciary responsibility that is part and parcel of that position. A fiduciary is defined as an individual in whom another has placed the utmost trust and confidence to manage and protect property or money.
A fiduciary relationship encompasses the idea of faith and confidence and is generally established only when the confidence given by one person is actually accepted by the other person. Mere respect for another individual’s judgment or general trust in his or her character is ordinarily insufficient for the creation of a fiduciary relationship.
The duties of a fiduciary include loyalty and reasonable care of the assets within custody. All of the fiduciary’s actions are performed for the advantage of the beneficiary.
It is without a doubt that the chief risk officer of an organisation has a significant fiduciary duty to all he represents. When one betrays trust that is placed in you for personal gain, this is tantamount to criminal activity.
When one examines the players in the First Citizens IPO, it can be seen that there was a total abdication of fiduciary responsibility by all players in this sordid mess.
This IPO was meant to be a wealth creation vehicle for the wider population, an investment opportunity that would offer a significant rate of return in an environment of low and static growth rates.
Instead, the insatiable desire for wealth by a few has caused this great opportunity offered by the Government to be tarnished. The subsequent actions of the Attorney General is a right move.