Legal/Regulatory constraints write, better, applies, nothing, investor

Howd

if nothing pops out, better to right "none" or "prudent investor rule"?

i thought i saw schweez say somewhere to write "prudent investor rule applies" but in their exam questions they don't do that.

justin88

For institutional investors I think it's ok to put down ERISA, prudent investor, or prudent expert rule. Certainly isn't wrong....

There are two special cases that I have come across though:
1) The same person being sponsor and manager of a foundation/endowment, and
2) An investor owning shares of a company that he functions for as member of the board.

Actually, I sometimes find it difficult to determine what "unique circumstances" are...

PalacioHill

Individual investors - generally none
Pension funds - ERISA
Foundations - varies from country to country but the US have the min 5% spending rule
Endowments - very little, many of the restrictions are put in place by the donor
Life insurance - Prudent investor rule, limitations of eligible investments, valuation rules governed by NIACs
Non life insurance - risk based capital requirements
Banks - heavily regulated, capital reserve requirements, must pledge collateral against uninsured deposits