Avoiding Fiduciary Faux Pas

Fiduciaries and attorneys who represent them may be interested in “Prudent Investment Practices – A Handbook for Investment Fiduciaries.” This guide is available for free from the Foundation for Fiduciary Studies online at www.ffstudies.org/checklist.pdf.

“The legal and practical scrutiny a fiduciary undergoes is tremendous, and it comes from multiple directions and for various reasons. It is likely that complaints and/or lawsuits alleging fiduciary misconduct will increase. Although some of these allegations may be entirely justified, most can be avoided by following the investment practices outlined in this handbook.”

It doesn’t exactly constitute easy reading, but it is worthwhile for anyone acting in a fiduciary capacity. The capacity is undoubtedly a weight which weighs on anyone bearing it. You must act in another’s best interest at all times and immediately disclose any conflicts of interest. There is intense scrutiny surround the process and one can be forgiven for feeling the pressure. Anyway, enough of me laboring on about fiduciary duty, you will learn enough about that in your business ethics courses and then in whatever training programs your companies put you through. Consider the above just an opener to the responsibilities, it’s not all inclusive by any means.