Posts Tagged ‘Duties of Care’
The Trustee’s Compliance Library
Trustees and beneficiaries don’t always see eye-to-eye on issues of trust administration and governance. For the most part, the reasons for these disagreements are divergent beliefs about responsibility, duty, fairness, and transparency. Then the attorneys are called and nobody wins. At the heart of all of these conflicts is a single issue–did the trustee act…
Read MoreA Trustee’s Duty to Independently Monitor Delegates UPIA §9(a)(3)
The Uniform Prudent Investor Act at Section 9(a)(3) directs, “A trustee shall exercise reasonable care, skill and caution by periodically reviewing the agent’s actions in order to monitor the agent’s performance and compliance with the terms of the delegation.” Many trustees implicitly trust the investment advisor to whom they (or their predecessor) delegated investment duties. They…
Read MoreUPIA §7 – A Trustee’s Duty to Incur Only Reasonable Costs
“Wasting beneficiaries’ money is imprudent. In devising and implementing strategies for the investment and management of trust assets, trustees are obliged to minimize costs” (National Conference of Commissioners on Uniform State Laws).Duty to Pay Only Fair Fees: Section 7 of the Uniform Prudent Investor Act states, “In investing and managing trust assets, a trustee may only…
Read MorePrudent Delegation Standard of Care: Registered Investment Advisor v. Registered Representative
In the same way a trustee owes duties of care and loyalty to the beneficiaries of a trust, the investment managers also owe a particular standard of care to the trust itself. A prudent trustee will determine what standard of care is owed by the money managers to whom investment duties have been delegated. Investment…
Read MoreUPIA §7 re Duty to Pay Only Fair Fees
“Wasting beneficiaries’ money is imprudent. In devising and implementing strategies for the investment and management of trust assets, trustees are obligated to minimize costs” (National Conference of Commissioners on Uniform State Laws). Duty to Pay Only Fair Fees Section 7 of the Uniform Prudent Investor Act states, “In investing and managing trust assets, a trustee…
Read MoreJohnny Depp v. TMG: What are a business manager’s duties of care?
The Question: What standard of care and what attendant duties does a business manager owe to their client? The Answer: It depends on what roles and services the business manager fulfills for their client. A good argument can be made that the business manager owes a similar fiduciary standard of care to their clients as…
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