Question

Which best describes the relationship between common law fiduciary duty and the statutory fiduciary obligations of a broker?

A. The common law fiduciary duty of a broker is broader than the statutory fiduciary obligations of a broker.
B. The statutory fiduciary obligations of a broker are broader than the common law fiduciary duty of a broker.
C. The common law fiduciary duty of a broker is the same as the statutory fiduciary obligations of a broker.
D. There is no relationship between common law fiduciary duty and the statutory fiduciary obligations of a broker.

Answer 1

Common law fiduciary duty of a broker, derived from judicial precedent, is generally broader than the specific statutory fiduciary obligations laid out in legislation or regulations. Option A is correct.

Step-by-step explanation:

The relationship between common law fiduciary duty and statutory fiduciary obligations of a broker is a nuanced one. Broadly speaking, common law fiduciary duties are derived from case law and judicial precedent and tend to speak to general principles of loyalty, care, and good faith.

In contrast, statutory fiduciary duties are those specifically outlined in legislation or regulations and typically aim to provide more detailed and explicit standards that brokers must abide by. Option A is generally more accurate, stating that the common law fiduciary duty of a broker is broader than the statutory fiduciary obligations because it encapsulates a wider range of scenarios and emphasizes principles that might not be comprehensively codified in statute.