A Few Facts About The...

UNIFORM PRUDENT INVESTOR ACT

PURPOSE:
This act removes much of the common law restriction upon the investment authority of trustees of trusts and like fiduciaries. It allows such fiduciaries to utilize modern portfolio theory to guide investment decisions. A fiduciary's performance is measured on the performance of the whole portfolio, not upon the performance of each investment singly. The act allows the fiduciary to delegate investment decisions to qualified and supervised agents. It requires sophisticated risk-return analysis to guide investment decisions.

ORIGIN:
Completed by the Uniform Law Commissioners in 1994.

APPROVED BY:
American Bar Association
American Bankers Association

STATE ADOPTIONS:
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
District of Columbia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Maine
Massachusetts

** Substantially Similar

Maryland **
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
North Carolina
North Dakota
Ohio
Oklahoma
Oregon

Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
U.S. Virgin Islands
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

2010 INTRODUCTIONS:

For any further information regarding the Uniform Prudent Investor Act, please contact
Kieran Marion or Katie Robinson at 312-450-6600.

© 2002 National Conference of Commissioners on Uniform State Laws
111 North Wabash Ave., Suite 1010
Chicago, Illinois 60602

tel: (312) 450-6600 | fax: (312) 450-6601 | e-mail: nccusl@nccusl.org