Dec 1, 2009 12:00 PM

, By Thayer J. Herte & Suzanne L. Shier

Root out conflicts of interest for fiduciaries and for lawyers representing fiduciaries. A guide

By Thayer J. Herte & Suzanne L. Shier

If Ponzi schemer Bernard Madoff serves no other purpose, he's a stark reminder that anyone acting in a fiduciary capacity must maintain high standards of ethical conduct in all dealings with customers and clients. In fact, it could be argued that this year's revelations about the once-revered Madoff plus the near collapse of the U.S. financial market combine to make it so that at no other time in recent memory have wealth advisors, their clients and their attorneys been more sensitive to the need to ensure that fiduciary responsibilities are handled properly. With clients feeling vulnerable, any fiduciary conduct that even seems to create a conflict of interest hits a very raw nerve indeed — and could have far-reaching financial and reputational consequences for all involved.

So, as the year-end approaches, it's wise to reexamine how we can avoid conflicts and ensure appropriate oversight and risk management controls that are not only in place, but also monitored frequently.