Reclaiming Fiduciary Duty Balance

14 Pages Posted: 1 Oct 2011

See all articles by James P. Hawley

James P. Hawley

Saint Mary's College of California; TruValue Labs

Keith L. Johnson

Reinhart Institutional Investor Services

Edward J. Waitzer

York University - Osgoode Hall Law School; York University - Schulich School of Business; Stikeman Elliott LLP

Date Written: September 21, 2011

Abstract

Fundamental fiduciary principles have survived intact for centuries, yet their interpretation has been dynamic. Given changes over the past few decades in global economic, capital management, and market structures, we appear to be at another inflection point in the understanding of fiduciary principles. Years of focus on the fiduciary duty of prudence has generated myopic investment herding behaviors, undermined intergenerational pension equity, and disrupted attention to the fiduciary duties of loyalty and impartiality. Reclaiming fiduciary duty balance between prudence, loyalty and impartiality is critical to sustaining pension promises. It would encourage better alignment of pension service providers’ supply chain interests, adoption of fit-for-purpose pension fund governance practices, and implementation of precautionary risk management policies.

Keywords: Fiduciary Duty, Impartiality, Modern Portfolio Theory, Pension Fund, Risk Management

Suggested Citation

Hawley, James P. and Johnson, Keith L. and Waitzer, Edward J., Reclaiming Fiduciary Duty Balance (September 21, 2011). Rotman International Journal of Pension Management, Vol. 4, No. 2, p. 4, Fall 2011. Available at SSRN: https://ssrn.com/abstract=1935068

James P. Hawley (Contact Author)

Saint Mary's College of California; TruValue Labs ( email )

San Francisco, CA 94105
United States
510-928-1327 (Phone)

Keith L. Johnson

Reinhart Institutional Investor Services ( email )

22 E. Mifflin Street
Suite 600
Madison, WI 53703
United States

HOME PAGE: http://www.reinhartlaw.com

Edward J. Waitzer

York University - Osgoode Hall Law School ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada
416 869 5587 (Phone)

York University - Schulich School of Business

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

Stikeman Elliott LLP

5300 Commerce Court West
199 Bay Street
Toronto, ON M5L1B9
Canada

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