Uniform Prudent Investor Act (UPIA) Law and Legal Definition
The Uniform Prudent Investor Act (UPIA) was adopted in 1992 by the American Law Institute's Third Restatement of the Law of Trusts. Under this act, fiduciaries are permitted to utilize modern portfolio theory to guide investment decisions. Therefore, a fiduciary’s performance is measured on the performance of the entire portfolio, rather than individual investments. Following are some of the advantages of UPIA:
1. A fiduciary will not be held liable for individual investment losses, so long as the investment is consistent with the overall portfolio objectives.
2. Diversification is given importance in prudent fiduciary investing.
3. A fiduciary is permitted to delegate investment management and other functions to third parties.
4. Trust account’s purposes and beneficiaries’ needs are considered while determining fiduciary.
44 states of the U.S. and the District of Columbia have adopted the UPIA.
Legal Definition list
- Uniform Prudent Investor Act (UPIA)
- Uniform Probate Code (UPC)
- Uniform Principal and Income Act [UPAIA]
- Uniform Principal and Income Act
- Uniform Premarital Agreements Act
- Uniform Real Property Electronic Recording Act
- Uniform Reciprocal Enforcement of Support Act URESA
- Uniform Residential Landlord and Tenant Act [URLTA]
- Uniform Residential Mortgage Satisfaction Act
- Uniform Rules of Evidence Act
- Uniform Securities Act