Fiduciary Standards of Care
1. Know standards, laws, and trust provisions.
2. Diversify assets to accommodate return/risk
profile of client.
3. Prepare investment policy statement.
4. Use "prudent experts"–money
managers–and
document due diligence.
5. Control and account for investment expenses.
6. Monitor money managers and service vendors.
7. Avoid conflicts of interest and prohibited
transactions.
Adapted from: "Prudent Investment Practices, A
Handbook for Investment Fiduciaries" 2000-2002 Foundation for Fiduciary
Studies. Web site:
http://www.fi360.com/main/practices.jsp.
Prudent Fiduciary
The essence of being a prudent fiduciary is having
and consistently using a documented process when making investment
decisions or providing investment recommendations or advice.
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