Legal Constraint Section of IPS

CFA Level III
#1

Had a brain-block…what is the tag word we use for foundation/endowment’s legal constraint section of IPS. UM**** applies, I can’t remember…thanks.

#2

UMIFA Unifom management of inst. funds act…

#3

Ah…thanks!!!

#4

I am planning on putting Prudent Expert rule for Pensions Predent Person rule for endowments/foundations Is that right?

#5

I think for pension, it is more appropriate to put ERISA applies, don’t you think?

#6

WORD ERISA!

#7

yes pensions subject to ERISA an state/local laws (?) what would you indicate for the rest and also for prudnt person/expert… Foundations UMIFA Endowment UMIFA Life Ins Non Life Ins Banks DB Pensions ERISA State/local DC Pensions ERISA State/local

#8

Life Ins - NAIC National Association of Insurance Commissioners

#9

life and non life?

#10

Heavy State regulations.

#11

Did we ever come to a conclusion on whether a prudent expert is the same as a prudent person vs a prudent investor? Is this right? Prudent person: evaluates risk-return on a security by security basis, rather than how it contributes to a portfolio. Prudent expert: evaluates risk-return on portfolio basis, so a conservative portfolio might have small amounts of risky-sounding stuff if they have the right correlations in it to reduce risk. Prudent investor: another name for prudent expert.