@article {Braverman7, author = {Steven Braverman}, title = {New legislation holds trustees to a higher standard}, volume = {8}, number = {4}, pages = {7--11}, year = {2006}, doi = {10.3905/jwm.2006.614206}, publisher = {Institutional Investor Journals Umbrella}, abstract = {The author starts with the observation that as new legislationbegins to take effect{\textemdash}specifically, the Uniform Prudent InvestorAct (UPIA) and the Revised Uniform Principal and Income Act(UPAIA){\textemdash}trustees are under increasing pressure to exercise bestpractices in trust management. Further, as the pressure on trusteesincreases, levels of service and performance from the past nolonger meet today{\textquoteright}s higher standards. The author illustrates thedefinition of {\textquotedblleft}prudent{\textquotedblright} with regard to UPIA and UPAIA andoffers specific trust management lessons to be learned as a resultof recent litigation and the subsequent judicial decisions. Then,he argues that UPIA not only requires a higher standard of duediligence on the partof trust managersbut also in fact compelsthem to consider newinvestment products, such as derivativesand exchange-traded funds. Finally,he explores the proper appli-cation of these investments as a means of risk management, aswell as the necessity of leveraging best of breed financial advis-ersfor such highly specialized instruments.TOPICS: Legal/regulatory/public policy, wealth management, derivatives, exchange-traded funds and applications}, issn = {1534-7524}, URL = {https://jwm.pm-research.com/content/8/4/7}, eprint = {https://jwm.pm-research.com/content/8/4/7.full.pdf}, journal = {The Journal of Wealth Management} }