10.b schweser notes says: the requirement for skill is higher in New prudent investor rule than old one. Why…
Got the answer. More and more challenging to be a portfoilo manager.
The Old Rule merely required the trustee merely needed to behave prudently. The CFAI book says this about skill in the New Prudent Investor Rule: Skill means that although a person of ordinary intelligence, without financial expe- rience, may serve as a trustee, he should obtain the guidance of specialists in order to meet the skill criterion. Furthermore, unlike the Old Rule, which in general forbade investment delegation, the Restatement holds that a trustee may in some instances have a duty to delegate investment authority to others. In so delegating, “the trustee must exercise appropriate care and skill in selecting and supervising agents and in determining the degree and terms of the delegation.” If, on the other hand, a trustee possesses more than ordinary skill, he must use it.
Thanks this is helpful