In Pitfalls for Attorneys, Business Managers and CPAs auditing expert witness Chris McConnell writes on 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:
o Uniform Prudent Investor Act (UPIA)
o ERISA o Taft Hartley Act – Union or multi-employer pensions o Uniform Management of Public Employee’s Pension Systems Act (UMPERs)
o Uniform Prudent Management of Institutional Funds Act (UPMIFA)“The majority of investment fiduciary compliance is controllable”