Page 63 - DCAC December 2024 Files
P. 63
Understanding Fiduciary Responsibilities
Process, Not Hindsight, is the Relevant Standard
• Courts in fiduciary breach cases have consistently
stated that the fiduciary does not need to be
“right” on every decision, but that the decision-
making process is what will determine fiduciary
liability.
• Compliance with the prudent investor rule is
determined in light of the facts and circumstances
existing at the time of a fiduciary’s decision or
action and not by hindsight.
“Your investments are not working out because your
hindsight is 20/20 and your foresight is 20/400.”
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