Exposure Items

Fiduciary Liability Exposure Checklist

Pitfalls for Attorneys, Business Managers and CPAs

Providing investment advice to clients whether or not you receive compensation

Drawing the line between investment advice and legal, financial or tax advice

Serving as trustee to accomodate a client who doesn’t want heirs to know or be involved

Recommending any investment, stockbroker, financial planner or insurance agent to a trustee then failing to monitor the situation; among other things, personnel turnover happens and compliance may erode.

Receiving any remuneration or compensation for referrals, investments or insurance, etc.

Steps to consider to insulate your professional practice

Identify potential fiduciary risk exposure areas in your practice

Review E&O insurance for coverage or exclusions related to investment fiduciary activities

Inform clients who act as trustees of fiduciary responsibilities and liability

Alert clients of potential liability before they accept a trustee or board position on a non-profit

Become familiar with federal and state laws concerning investment fiduciary standards of care:

Uniform Prudent Investor Act (UPIA)

ERISA, Taft-Hartley Act (Union, multi-employer plans)

Uniform Management of Public Employee’s Pension Systems Act (state, county, city plans) (UMPERs)

Uniform Prudent Management of Institutional Funds Act (UPMIFA)

Seek an independent, third party opinion from us; it counts as due diligence.

For more information info@fiduciaryexpert.com or (310) 943 – 6509

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