Fiduciary Responsibility in Chicago: How to Get Started
Fiduciary responsibility is a critical concept for any executive involved in the Chicago corporate sector3 min read
Fiduciary responsibility is a critical concept for any executive involved in the Chicago corporate sector. Fiduciary responsibility – which states that any corporate professional handling money, assets, information, and the like must do so responsibly and in the company’s best interests – is an essential part of ethical business practices.
That said, getting started with fiduciary responsibility can be daunting. There are local regulations to consider, company policies to familiarize yourself with, and unexpected scenarios to keep in mind. So to help executives comply with their fiduciary duties, here is all that you need to know about fiduciary responsibility in Chicago, from how to get started to understanding local regulations.
Fiduciary Responsibility Definition and Responsibility Overview
First and foremost, a definition: fiduciary responsibility is the obligation to make decisions with the best interests of the company in mind, without any potential for personal gain. In other words, executives with fiduciary responsibility – fiduciaries – must not make decisions or conduct themselves in illegal, unethical, or irresponsible and careless ways that could be detrimental to the company’s finances, assets, reputation, or legal standing.
Fiduciaries are responsible for acting with the utmost good faith, loyalty, and diligence toward the company, and for avoiding conflicts of interest between themselves and the companies for which they work.
Understanding the Local Regulations of Fiduciary Responsibility in Chicago
Fiduciary responsibility is regulated by both national and local laws in the United States. National fiduciary regulations are set by the Securities and Exchange Commission (SEC), while state-specific regulations are set by individual states. In the case of Chicago, Illinois, fiduciary regulations are set forth by the The Illinois Securities Laws of 1953 (amended in 1975).
The Illinois Securities Laws of 1953 is a set of laws and regulations detailing the responsibilities of investment advisors, broker-dealers, securities dealers, and their agents. It outlines the duties of fiduciaries, as well as fees, disclosures, adverts, and the like. A copy of the laws can be found in the Illinois Secretary of State's website.
In addition to local laws, fiduciaries must also be aware of company policies. It is important for fiduciaries to stay informed of their company’s policies for proper fiduciary responsibility and to be familiar with any and all applicable regulations. The company policies may differ from the local and national regulations, and it is the fiduciary’s responsibility to be aware of these differences and act accordingly. Additionally, it is important for fiduciaries to be aware of what constitutes a breach of fiduciary responsibility in order to avoid any potential legal consequences.
Finally, it is essential that fiduciaries are prepared for unexpected scenarios and unforeseen legal issues. A good fiduciary is always prepared for the unexpected – and to ensure that all potential actions and decisions are compliant with applicable laws and regulations.
Where to Get Help
For executives and businesses looking for legal counsel that understands the intricacies of local regulation, UpCounsel is a great option. Whether you need a one-time consult or an entire freelance legal department, UpCounsel’s network of experienced lawyers has you covered.
From small businesses to the Fortune 1000, groundbreaking companies of all sizes trust UpCounsel and its attorney community to provide high quality, cost-effective legal services. Benefits include:
Access to high quality attorneys on demand
Business attorneys have an average of 14 years of experience
Profiles of our online attorneys display client ratings and reviews of recent work
In addition, UpCounsel offers specialties in fiduciary responsibility, meaning you can get the help you need while staying compliant with the laws and regulations of the State of Illinois.
Fiduciary responsibility is essential for any executive involved in the Chicago corporate sector. To ensure proper compliance and avoid potential legal issues, it is important for fiduciaries to understand their fiduciary duties and the applicable regulations, as well as take any necessary action to avoid a breach of fiduciary responsibility.
For business owners and executives in need of legal counsel that understands the local regulations, UpCounsel is an excellent option. With UpCounsel, you can access high quality, cost-effective attorneys quickly and easily – with specialties in fiduciary responsibility – all with the assurance of reviews and ratings from past clients.