new york – the american institute of certified public accountants (aicpa) and fiduciary360 (fi360) have announced the publication of the u.s. edition of prudent practices for investment advisors handbook. the handbook adapts the prudent practices for investment fiduciaries, defined by the foundation for fiduciary studies, to provide a framework for a disciplined investment process specific for investment advisors.the handbook identifies 23 practices for investment practitioners and addresses many ethical and professional requirements. the handbook arranges the practices into a four-step investment management process: organize, formalize, implement and monitor.
the aicpa and fi360 believe that prudent practices for investment advisors provides investment practitioners with two key benefits:
- assisting them in managing risk through a recommended “checklist” process that helps ensure investment decisions are carried out with prudence and due diligence.
- providing a competitive advantage because they are adhering to a defined fiduciary standard of excellence.
the handbook was reviewed and edited by the fiduciary task force of the aicpa personal financial planning executive committee.
“cpas practicing in financial planning and investment advisory services are well respected for ethical and fiduciary standards that put investors’ interests first and foremost,” said clark blackman, cpa/pfs, president of alpha wealth strategies, llc, and chair of the task force. “this handbook is an essential guide to help these cpas maintain an insightful and disciplined investment practice.”
investment practitioners can use the new handbook to enhance their fiduciary practices and procedures and demonstrate their adherence to the highest standard of excellence. since all the suggested practices are substantiated by legislation, case law, or regulatory opinion letters, investment practitioners can be confident they are basing their investment decisions on a validated source.
“investors demand and are entitled to the best from their advisors,” said blaine aikin, ceo of fi360. “an investment practitioner who is proactive in performing his or her fiduciary duties to the very highest standard of care can confidently meet those demands.”
prudent practices for investment advisors complements a series of fiduciary handbooks published by fi360 to enable investment fiduciaries to make informed decisions and protect consumer interests. for more information or to purchase a copy, visit www.fi360.com.