A company’s long-term survival depends on paying attention to both financial and social metrics. As fiduciaries, we need to keep in mind the importance of demonstrating not only WHAT we do, but WHY we do it.
As stated in the prudent man rule, found in ERISA Section 404(a)(1)(B), fiduciaries must act: “with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with […]
The last few weeks have seen an increase in the volatility of the global markets. First, there was the scare of a China melt down and recently the concern around the balance sheet of Glencore, one of the World’s largest commodity traders. What is your fiduciary responsibility?
There are four general categories of fiduciaries in regards to managing an investment process: Those who are “named” in plan or trust documents Those whose function equates to providing comprehensive and continuous investment advice Those who have the discretion to buy and sell investable assets
(From the fi360 Blog): fi360’s most recent update to their Fiduciary Practices was completed in 2013. That update introduced a new criterion related to safeguarding client and plan data.
Working in a global environment with cross-border financial, political and social issues, the benefits of conforming to the ISO-based Global Fiduciary Standard of Excellence are clear.
Stewards, as fiduciaries, are rightly concerned about the investment performance of their portfolios. Until recently however, few fiduciaries have considered the return on fiduciary governance as an equally important measure.
In a conversation last week with a Board Member whose non-profit organization oversees $100 million, the Board Member admitted that he had difficulty in getting people to serve.
The decision by the US Supreme Court in the Tibble v Edison Case this past spring further highlights the complexity of having to deal with a broad range of fiduciary compliance issues.
Peabody Energy Corporation is facing a class action lawsuit alleging violations of the Employee Retirement Income Security Act (ERISA) by continuing to offer company stock as an investment in several defined contribution (DC) plans.
1. Lack of a proper investment policy statement: The Investment Policy Statement, or “IPS” is like the architect’s plans for the building of the house. Before engaging a subcontractor to build the basement, you need to know how big a basement it is that you need.
115 Year old University Fails to Follow Proper Fiduciary Practices and Devastates the Legacy of its Founder. This is a good case where there is value to integrating fiduciary due diligence with strategic planning.
In almost all breach of fiduciary cases, the plan trustees fail to follow a prudent process.
Under Section 404(a)(10(B) of the Employee Retirement Income Security Act of 1972 (“ERISA”), fiduciaries must act:
There are about 2.5 million nonprofits in this country, almost all of which are clamoring for money to support their operations.
We believe that a strong fiduciary process, based on strong ethics and integrity, is integral to the success of our clients and, by extension, our business.
From research by the IMD Business School in Lausanne, Switzerland (rated #1 worldwide in open programs by the Financial Times):
The global certifier, CEFEX based in Toronto, can help with the mitigation of legal risk for plan sponsors. From the CEFEX press release of 08-30-12: “Today we are announcing a legal opinion letter which helps plan sponsors mitigate the risk associated with the selection of service providers.