Tag: investment adviser
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Fiduciary Papers #12: The Prudent Investor Rule’s Requirement for Tax Efficient-Investing
OVERVIEW: THE PRUDENT INVESTOR RULE The Uniform Prudent Investor Act (UPIA) (1995), adopted in some form by all 50 states, applies to the investment of private trust funds. The Prudent Investor Rule, which forms the core of the UPIA, also applies in other contexts, such as to guardians, conservators, executors of estates, trustees of charitable…
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Fiduciary Papers #8: Brokers’ and Investment Advisers’ Duty of Due Care, and Due Diligence in Particular, Receives Renewed Emphasis from SEC Staff
In the design and management of investment portfolios, both brokers (under Reg BI) and investment advisors (as fiduciaries) possess a duty of due care. This includes undertaking sufficient due diligence as to both investment strategies, as well as in the investment product selection process. As discussed below, in April 2023 the Staff of the U.S.…
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The Collapse of SVB: Thoughts on Moral Hazard, Market Fundamentalism, Fiduciary Duties, and the Scope of Government Regulation
ON THE EXISTENCE OF MORAL HAZARD IN BANKING (ONCE AGAIN) The collapse of Silicon Valley Bank and Signature Bank in led to a March 12, 2023 joint statement from Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg, in which they declared, with respect…
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Ten (TOUGH) Questions You Should Be Asking Your Financial Advisor
HERE IS A DOCUMENT THAT YOU CAN PROVIDE TO YOUR CURRENT, OR PROSPECTIVE, FINANCIAL ADVISOR, TO SEE WRITTEN ANSWERS TO THE TOUGH 10 QUESTIONS. FOLLOWING IS THE TEXT FROM THE FILE, ABOVE, FOR THOSE WHO PREFER TO READ IN THIS MANNER. 10 Tough Questions You Should Ask Any Financial Advisor By Ron A. Rhoades,…