Uniform prudent investor act pdf

Wellman, university of georgia, school of law, athens, ga 30602, chair clarke a. Referred to committee on labor, commerce and industry january 8, 2019. The uniform prudent investor act regulates the investment responsibilities of trustees. Although the uniform prudent investor act became effective in texas in 2004, the prudent investor standard has been a topic of litigation in american courts since the 19th century. Uniform prudent investor act the committee that acted for the national conference of commissioners on uniform state laws in preparing the uniform prudent investor act was as follows. In the 1990s and especially since the promulgation of the uniform prudent investor act in 1994, a trustees obligation to invest the assets of a trust as a. The cornerstone of upia is its prudent investor rule, which states. The uniform law commissions summary of the act states that the adoption of this act by the state legislatures will correct the rules, based. The best investment strategy for complying with the. The uniform prudent investor act upia undertakes to update trust investment law in recognition of the alterations that have occurred in investment practice. The uniform prudent investor act is a uniform statute that sets out guidelines for trustees to follow when investing trust assets.

Uniform prudent investor act drafted by the national conference of commissioners. Over the quarter century from the late 1960s the investment practices of fiduciaries experienced significant change. Today some version of the new prudent investor rule is the law in all states. The uniform prudent investor act the uniform prudent investor act upia, enacted in 1994, has been adopted with minor modifications by most states. Obsolescence over time is not the only stimulus for promulgating upia 1997. Be it enacted by the general assembly of the state of colorado. Development of the uniform prudent investor act in 1994, the national conference of commissioners on uniform state laws developed the uniform prudent investors act upia. Prefatory note over the quarter century from the late 1960s the investment practices of fiduciaries experienced significant change. The act requires trustees to follow the modern portfolio theory mpt of investing.