The Uniform Fiduciary Standards of Care

These standards were developed by the Foundation for Fiduciary Studies, laying the groundwork for a prudent process that all fiduciaries should follow.

1. Know standards, laws, and trust provisions.
2. Diversify assets to specific risk/return profile.
3. Prepare Investment Policy Statement.
4. Use ?prudent experts? (money managers) and document due diligence.
5. Control and account for investment expenses.
6. Monitor the activities of ?prudent experts.?
7. Avoid conflicts of interest and prohibited transactions.

What philosophy was followed when developing the standards?

1.  To define practices that are comprehensive, but not cumbersome.
2.  To define practices that are free of industry jargon so the average person can 

     understand them.  
3.  To define practices that serve a dual purpose: (1) They define a prudent investment

     process for the trustee and investment committee member; and (2) They define the

     functions of the investment advisor.
4.  To define practices that can be applied to any fiduciary portfolio - applicable to private

     trusts, retirement plans, and foundations/endowments.
5.  To define practices that deal only with the management of investment decisions and

     not the practices that pertain to actuarial, record keeping, administration, tax,

     insurance, and estate planning functions.

 

Copyright © 2000-2003, Foundation for Fiduciary Studies.

 

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