Fiduciary Responsibilities

“A fiduciary is someone who is responsible for managing someone else’s money.”
—W. Scott Simon, author of The Prudent Investor Act: A Guide to Understanding

What is a Fiduciary?

Simply put, a fiduciary is anyone responsible for managing someone else’s money.

 

Who is a Fiduciary?

According to the fiduciary advocate group, fi360, "It is not uncommon for fiduciaries to be unaware of their status. If a person is a decision-maker (or responsible person) for a private family trust, pension plan, or endowment they are probably a fiduciary."

 

It’s the Process Stupid!

While it is often poor performance that triggers scrutiny, the standards of modern prudent fiduciary investing are based on the process, not the results. The prudence of a fiduciary’s actions is determined not by a portfolio's results but by the soundness of the decision-making process that led to those results.

 

Duties

Fiduciaries are not expected to be experts but they are required to take the time necessary to gain the experience and knowledge necessary to fulfill their legally required duties.

 

Our Services

We help fiduciaries follow a prudent process whether it is in our role as a consultant or as an investmentvadvisor. While each situation is unique the broad outline of a prudent process requires the following steps:

  • Gathering and organizing information
  • Creating a plan
  • Documenting activities
  • Writing an Investment Policy Statement
  • Implement the plan
  • Monitoring and modifying the plan
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