In 2005, the SEC turned its attention to investigating whether there is a conflict of interest issue in the investment consulting community. Twenty-five consulting firms were sent letters requesting information on their practices and procedures. The following pieces contain the Questionnaire that was sent out, and the resulting Findings Report that was issued by the SEC on May 16, 2005. Primary focus is on the fiduciary status of consultants and identifying sources of revenue in multi-practice consulting firms.
Recent controversies at various investment management and consulting practices have reminded institutional investment officers and committees how important it is to engage in good fiduciary practices. The Uniform Prudent Investor Act provides the guiding principles in this regard. The following articles, from MorningstarAdvisor.com, were written by an expert in the field and provide a highly readable review of fiduciary “dos and don’ts.”
Whether you are a plan sponsor or a fund trustee, you have fiduciary responsibilities. To help you understand those duties and provide you with an audit trail, we have posted the Fiduciary Investment Compliance Checklist excerpted from Procedural Prudence for Fiduciaries, The handbook for The Management of Investment Decisions. This useful reference guide was prepared by Donald B. Trone, William R. Allbright, and Philip R. Taylor. Click below to view the handy eight-page checklist: