Fiduciary and other legal duties

Benjamin J. Richardson*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapter

7 Citations (Scopus)


In common law legal systems, such as in the United Kingdom and the United States, fiduciary duties exert an important influence on institutional investors' latitude to practice socially responsible investment (SRI). Obligations on fund managers, trustees, and others who have custody of investors' money generally require that they invest prudently in their best financial interests. In limited circumstances, this legal framework may allow SRI such as when these investments offer comparable returns, the fund's constitution mandates SRI, or if beneficiaries consent to SRI. Recent statutory reforms in some jurisdictions have created a more enabling legal environment for SRI than in the past.

Original languageEnglish
Title of host publicationSocially Responsible Finance and Investing
Subtitle of host publicationFinancial Institutions, Corporations, Investors, and Activists
EditorsH. Kent Baker, John R. Nofsinger
Place of PublicationHoboken, NJ
PublisherJohn Wiley & Sons
Number of pages17
ISBN (Electronic)9781118524015, 9781118237014, 9781118262054, 9781118223758
ISBN (Print)9781118100097
Publication statusPublished - 2012
Externally publishedYes


  • Beneficiaries
  • Fiduciary duties
  • Legislative reform
  • Social responsibility
  • Trust law
  • Trustees

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