The Prudent Man Rule, which applies to fiduciaries, is a comparatively old concept in investment management.

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The Prudent Man Rule, originating from the Massachusetts court decision in Harvard College v. Amory in 1830, is indeed an old concept in investment management, setting a standard for fiduciaries to act in the best interest of their clients, with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use.

The Prudent Man Rule, Which Applies to Fiduciaries, Is a Comparatively