Fiduciary Consulting Services

Fiduciary Consulting: Hardy Reed will provide your organization with ongoing professional guidance in implementing and managing fiduciary best practices that are the framework for the Global Fiduciary Standard of Excellence.

Fiduciary Assessment: Hardy Reed will provide an independent, comprehensive assessment of your organization’s fiduciary governance processes.

Fiduciary Training: Hardy Reed will train staff, committee and/or board members how to better adhere to the fiduciary best practices developed by the Center for Fiduciary Studies. These best practices focus on the many legal and ethical requirements of fiduciaries.

CEFEX Certification: The CEFEX Certification is an annual independent validation that visibly demonstrates your organization is adhering to fiduciary best practices.

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People who serve as trustees, investment committee members, and employees of organizations who sponsor retirement plans or are responsible for managing nonprofit organizational assets are typically considered Investment Stewards. Investment Stewards are fiduciaries who have the legal responsibility for managing investment decisions and hiring and monitoring service providers for the portfolio. It is important for Investment Stewards to define the operational standards that service providers will be expected to adhere.

If an Investment Steward were to read all of the laws defining fiduciary obligations, the Steward would typically see seven recurring themes. These themes are referred to as the Global Fiduciary Precepts:

Global Fiduciary Precepts

  • Know standards, laws, and trust provisions.
  • Diversify assets to specific risk/return profile.
  • Prepare investment policy statement.
  • Use “prudent experts” (for example, an Investment Manager) and document due diligence.
  • Control and account for investment expenses.
  • Monitor the activities of “prudent experts.”
  • Avoid prohibited transactions and avoid or manage other conflicts of interest in favor of the portfolio.

Hardy Reed is a fiduciary consulting firm. We work with organizations who want to accomplish and are committed to, fiduciary excellence. Hardy Reed can provide the following professional fiduciary services to your organization:

Fiduciary Consulting:

Hardy Reed offers fiduciary consulting services to help you comply with The Global Standard of Fiduciary Excellence. The Global Fiduciary Standard of Excellence is established by twenty-one Prudent Practices that provide the framework of a disciplined investment process. The Practices are further supported by over one hundred Criteria, which represent the details of the Global Fiduciary Standard of Excellence. Each Practice is backed by legal substantiation based on statutes, case law, regulations and regulatory guidance.

The following is the link to the Prudent Practices for Investment Stewards Handbook (http://www.fi360.com/main/pdf/handbook_steward.pdf).

With the help of Hardy Reed’s comprehensive fiduciary consulting services, you can be confident that critical fiduciary best practices are being addressed. Our team of fiduciary experts will partner with you to manage risk, investment oversight, compliance complexities, employee/staff/board education and other fiduciary issues that you may encounter.

As your Fiduciary Consultant, some of our responsibilities may include:

  • Management of your Investment Policy Statement (IPS).
  • Creation and implementation of the search, selection, and due diligence process for investment managers.
  • Oversight of the service providers including selection and/or replacement.
  • Performing the role of an unbiased fiduciary expert in the decision-making process.
  • Joining the investment committee as a non-voting member and fiduciary consultant.
  • Helping ensure operational compliance.
  • Helping ensure Safe Harbors are implemented correctly.
  • Provide third-party resources to benchmark and assess the reasonableness of the fees being paid for the services to the service providers.

For more information: https://www.cefex.org/steward/fiduciary-consulting.shtml

Fiduciary Assessment:

A fiduciary assessment is based on the Global Standard of Fiduciary Excellence. Hardy Reed’s fiduciary assessment methodology provides an organization with a comprehensive 360-degree assessment of its fiduciary governance processes. The Fiduciary Assessment provides valuable insights into your Organization’s current governance and effectiveness of its fiduciary practices:

Your Assessment will include:

  • Evaluation of your Organization’s conformity to the Global Standard of Fiduciary Excellence
  • Review of your documents
  • Identification of applicable laws governing your Organization
  • Review of fiduciary governance processes
  • Independent analysis of your expenses
  • Identification of your Organization’s fiduciaries
  • Study of your Organization’s complexity and how complexity impacts expenses
  • Investment Monitoring Report

Benefits of the Hardy Reed Fiduciary Assessment to You:

  • Increasing the potential of positive outcomes by identifying appropriate procedures for:
    • Diversification
    • Independent, professional evaluation of fees and expenses
    • Selection & replacement of investments & service providers
  • Highlights opportunities to improve or establish evidence that your Organization is following a prudent governance process
  • Identifying your liabilities by uncovering investment and/or procedural risks
  • Compares your procedures with Global Standard of Fiduciary Excellence
  • Establishes benchmarks to measure your progress

For more information: https://www.cefex.org/Index.aspx?PageID=30

Fiduciary Training:

Demonstration of fiduciary training is a key fiduciary best practice. The methodology Hardy Reed uses to educate and train staff, committee and/or board members on fiduciary best practices was developed by the Center for Fiduciary Studies. Fiduciary training focuses on the many legal and ethical requirements of stewards and investment fiduciaries, which includes giving consideration to the Investment Advisers Act of 1940, Employee Retirement Income Security Act (ERISA), Uniform Prudent Investor Act (UPIA), and Uniform Prudent Management of Institutional Funds Act (UPMIFA).

CEFEX Certification:

“Investment Stewards are persons who manage private or public retirement plans, endowments, foundations, government funds or any money on behalf of others. The Investment Steward’s constituents, whether they be employees, donors, taxpayers or beneficiaries, need assurance that their money is being well managed.

The independent CEFEX Investment Steward certification demonstrates fiduciary excellence based on a fiduciary best practice standard.” CEFEX Website

For more information: https://www.cefex.org/steward

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