Publisher's Synopsis
A bank that provides asset management services for clients may be required tomanage a variety of actual or potential conflicts of interest. Conflicts ofinterest and self-dealing transactions normally arise whenever the bank's abilityto act exclusively in the best interest of account beneficiaries or clients isimpaired. A fiduciary is required by a long history of case law to put theinterests of account beneficiaries before the interests of the bank. The fiduciaryowes its beneficiaries undivided loyalty and must administer each trust for theexclusive benefit of account beneficiaries and the purposes for which theaccount was created.
