9. Qualities of fiduciary duties
• Serve to deter abuse
• Apply broadly (because every circumstance can’t be anticipated)
• Typically evaluated in hindsight
• Involve substantive safeguards that can’t be overridden by agreement
– serve client’s best interests
– prudence
– good faith
• Procedural safeguards required to demonstrate conformity
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16. Global Fiduciary Precepts
1. Know standards, laws, and trust provisions.
2. Diversify assets to specific risk/return profile of client.
3. Prepare investment policy statement.
4. Use “prudent experts” 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.
17. From Precepts to Practices
• Precepts are principles founded in law.
• Practices are applications of the precepts, founded in law and
research.
• A Standard of Practices constitutes a body of knowledge as to
what is required for a person or organization to meet
recognized expectations.