Precision Fiduciary Analytics (PFA) &
THE PORTFOLIO DIVERSIFICATION INSTITUTE (PDI)
Precision Fiduciary Analytics (PFA), and now THE PORTFOLIO DIVERSIFICATION INSTITUTE (PDI), are solutions-driven fiduciary consulting firms co-founded by Stewart Frank, CPA/PFS, AIFA, and Ben Vernazza, CPA/PFS, TEP (UK) Emeritus.
Co-Founder Frank, the AIPCA’s designated subject matter expert, developed PFA’s analytic methodology while consulting in more than 40 breach of fiduciary duty cases. PDI’s web based user-friendly delivery interface was developed by Co-Founder Vernazza, incorporating his practical knowledge gained over 40 years as an RIA and experience in fiduciary compliance gained while a member of AICPA’s Investment Committee.
PFA provides a low cost interactive suite of diversification management programs that quickly and simultaneously analyze whether a portfolio’s constituent holdings are sufficiently unconcentrated and adequately asymmetric to properly diversify any investment portfolio according the fiduciary diversification standards specified in the Restatement (3rd) Trusts. And if upon learning diversification levels need improvement, the same algorithms are quickly and easily put to use guiding fiduciaries and professional investment advisers through a prudent process that will increase diversification to an acceptable level.
The program and its algorithms are ideal for providing documented scientific analysis for use in legal disputes. It scientifically proves or disproves whether a diversification breach of fiduciary duty has occurred and can be instrumental in convincing a trier of fact. In certain instances It is especially useful for defending ERISA class action claims alleging excessive cost due to use of actively managed funds instead of index funds (contact us if you’d like more information about how this system application works).
The AICPA’s pending adoption of NOCLAR (non compliance with laws and regulations) represents a major change in the standard of care required of CPAs and will be embodied in the AICPA’s Code of Professional Conduct. Post NOCLAR investment portfolios’ audited financial statements will require CPAs to determine whether the portfolios have complied with all laws and regulations, including the fiduciary law governing diversification. The program makes it quick and easy for CPAs to comply with this enhanced professional standard.
Clients served include:
- CPA firms
- Wealth management /financial planning practices
- Qualified plan audit practices
- Not-For-Profit endowment funds
- Family offices
- Law firms
- Trust and estate practices
- Breach of fiduciary duty litigation practices
- Qualified plan practices
- Retirement plan trustees
- Portfolio managers