fi360 Updates Handbook Series

The Prudent Practices handbooks serve as guides for investment fiduciaries and service providers to meet their legal and ethical obligations to investors. Registered investment advisers use the handbooks’ framework and structure to guide and develop their investment process. The updates were made after an extensive review process with legal and subject matter experts.

Since their publication in 2003, the handbooks have been periodically reviewed and updated to reflect any developments in law and regulation, as well as the input of practitioners and subject matter experts. The previous major update was made in 2006.

The updates include new and expansive discussions of:

• Investment Advisers Act of 1940;
• ERISA rules and guidance to reflect recent DOL activities;
• Dodd-Frank Act provisions addressing fiduciary duties;
• Increased due diligence and review of custodial arrangements in light of Madoff and other Ponzi schemes; and
• Managing conflicts when switching hats to non-fiduciary services.

“The Prudent Practices represent a standard that demonstrates investment decisions are being made as the result of a deliberate process that meets the core fiduciary duties of loyalty and care,” said Blaine Aikin, chief executive of fi360. “Investors and those entrusted to help manage their assets each benefit from higher standards of conduct.”

The handbooks are well regarded within the industry and were introduced in testimony in the influential Tussey v. ABB Inc. court case.

fi360 is the organization for fiduciary education, investment analytics, support services and industry insights for financial professionals.

More details about the updates can be found on fi360’s website.