prudent man rule

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prudent man rule n. the requirement that a trustee, investment manager of pension funds, treasurer of a city or county, or any fiduciary (a trusted agent) must only invest funds entrusted to him/her as would a person of prudence, i.e. with discretion, care and intelligence. Thus solid "blue chip" securities, secured loans, federally guaranteed mortgages, treasury certificates, and other conservative investments providing a reasonable return are within the prudent man rule. Some states have statutes which list the types of investments allowable under the rule. Unfortunately, the rule is subjective, and some financial managers have put funds into speculative investments to achieve higher rates of return, which has resulted in bankruptcy and disaster as in the case of Orange County, California (1994). (See: fiduciary, trustee)

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No references found			Sarbanes-Oxley replaces the Prudent Man rule with strictures that violate our Constitutional freedoms and do little to actually prevent future scandals. Revisiting Sarbanes-Oxley: was the well-intentioned landmark ... by Whalen, Christopher / The International Economy ERISA was aimed at protecting pension fund holders from the outrageous acts of money managers who flouted the Prudent Man Rule. Enron ain't the problem. (Compensation Committee) by Sosnoff, Martin T. / Directors & Boards Some of the important aspects of ERISA included a revision of the Prudent Man Rule, rules affecting funding, a rule allowing fiduciaries to delegate fiduciary responsibilities, and the requirement that all pension funds develop and maintain an investment policy statement. The Money Flood by Schwarz, Brennan / Government Finance Review			provoke hatred against provoke ire provoked provoker provoking provost prowess prowl prowl after prowler Proxenetae proxies proximal proximate proximate cause proximate to proximity proximity of blood Proximus est cui nemo antecedit; supremus est quem nemo sequitur proxy proxyship prudence prudens prudent prudent conduct prudent man rule Prudent Person Rule prudentia prudential prudently contrived Prudentur agit qui praecepto legis obtemperat prune prurience prurient Prussian pry pry into prying pseudo pseudonym pseudonymous psyche psychiatric hospital psychiatric ward psychological habits psychologically abnormal psychopathic psychotic puberty pubes pubescence			prudence prudence prudence prudence Prudence Crandall Day prudences prudences prudences prudences Prudency prudens Prudenskii, German Prudenskii, German Aleksandrovich prudent prudent prudent prudent Prudent buyer Prudent buyer Prudent buyer Prudent buyer prudent conduct Prudent Global Income Fund prudent layperson standard prudent limit of endurance prudent limit of endurance prudent limit of endurance prudent limit of patrol Prudent Man Principle Prudent Man Principle prudent man rule Prudent Person Principle Prudent Person Principle prudent person rule prudent person rule Prudent-Man Principle Prudent-Man Principle Prudent-man rule Prudent-man rule Prudent-Person Principle Prudent-Person Principle Prudent-Person Rule Prudent-Person Rule prudentia prudential prudential Prudential Asset Management Co., Ltd. Prudential Assurance Malaysia Berhad Prudential BSN Prudential Building Maintenance Corporation Prudential Corporation Asia Prudential Employee Savings Plan Prudential Financial Prudential Financial Regulatory Agency Prudential Fund Management Berhad Prudential ICICI Prudential ICICI Asset Management Company Prudential ICICI Equity and Derivatives Fund Prudential Insurance Company of America Prudential Investment Management Services LLC Prudential Liquidity Assessment Review

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