what is the difference?
Prudent expert rule is a little stricter. I think Prudent Expert Rule only applies to DBP plans, while Prudent Investor Rule applies for any other fiduciary management responsibility.
that is all we probably need to know about that, then? thanks for clearing that up.
not sure the prudent expert is related to defined benefit pension plans. in this case they emphasize that the expert has a duty to the plan beneficiaries. the plan has to invest in the interest of these beneficiaries in the case of foundations, endowments, insurance companies they talk about the prudent investor. although the investment is not on ‘behalf’ of somebody, the manager has to show prudence. What I understand from this is that in the case of defined benefit, the ’ expert’ has to invest accordingly to the characteristics of the plan members In the other case, there is not necessarily a suitability issue, but more of a prudent investing issue
yes, prudent expert is a higher standard and only applies to DBPs