Читать книгу The Investment Advisor Body of Knowledge + Test Bank - IMCA - Страница 18

In many cases, the consultant should be aware of the direct fiduciary relationship. These cases include becoming a trustee and sitting on the board of directors of a foundation.

If a consultant is named as a trustee, the consultant must be prepared to act in a fiduciary capacity on behalf of the client. The foundational case for trustee fiduciary standards was Keech v. Sandford in 1726. The law ultimately states that the trustee has a strict duty and that there never should be a conflict of interest in the relationship. Consultants agreeing to become trustees must realize that they are expected to be fiduciaries.

A consultant who holds himself or herself out as a fiduciary for ERISA plans and pensions may be held to fiduciary standards. In these cases, consultants must be prepared to define the scope and nature of their relationship with the entity for which they are consulting.

Sitting on the board of directors for a company, foundation, or endowment also may make the consultant a fiduciary. The duties owed to the individuals or entities should be examined by the consultant prior to making the commitment to sit on a board.