Three Models of the Bank's Fiduciary Duty

2(5) Law and Financial Markets Review 422

17 Pages Posted: 23 Apr 2014

See all articles by Ruth Plato-Shinar

Ruth Plato-Shinar

Netanya Academic College, Israel

Rolf H. Weber

University of Zurich - Faculty of Law

Date Written: September 2008

Abstract

Legal systems impose varying degrees of fiduciary duty on the banks. This paper analyses three models, thereby pointing out the differences between them. First, the Anglo-American model, which does not inherently consider the bank-customer relationship as a fiduciary one, yet it states exceptions to the rule. Second, the continental European model, that defines specific cases in which a fiduciary relationship exists. Third, the Israeli model, which applies the fiduciary duty to the bank-customer relationship as a whole and therefore states the widest standard of conduct for the banks. This paper concludes that a certain harmonization of the principle would be beneficial to the financial markets.

Keywords: bank-customer relationship, fiduciary duty, good faith, Israeli law, investment advice, duty of disclosure, conflicts of interest

JEL Classification: K19, K23, K39, N20

Suggested Citation

Plato-Shinar, Ruth and Weber, Rolf H., Three Models of the Bank's Fiduciary Duty (September 2008). 2(5) Law and Financial Markets Review 422. Available at SSRN: https://ssrn.com/abstract=2427591

Ruth Plato-Shinar (Contact Author)

Netanya Academic College, Israel ( email )

1 University St
Netanya, 4223587
Israel

Rolf H. Weber

University of Zurich - Faculty of Law ( email )

Rämistrasse 71
Zürich, CH-8006
Switzerland

Register to save articles to
your library

Register

Paper statistics

Downloads
181
rank
155,836
Abstract Views
1,039
PlumX