Fiduciary Liability Exposure Attorneys, CPA’s, Business Managers, Advisers

Fiduciary Liability Exposure Checklist

Trust, It's all about the client / beneficiary
Trust, It’s all about the client / beneficiary

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.

Contact us at

(310) 943 – 6509

Initial Courtesy Consultations

Copyright Chris McConnell & Associates 2003 – 2013. All rights reserved