Dimension 1.1: State goals and objectives (objectives) Leadership Behavior: Deliberative Standard The Standards Director prepares, monitors, and maintains.

Step

Dimension

Standard

Behavior

Dimension 1.1: State goals and objectives (“objectives”) Leadership Behavior: Deliberative

Standard

The Standards Director prepares, monitors, and maintains a written statement which defines the wealth holder’s goals and objectives, in terms of:

a.Core values: what the wealth is for, and what does the wealth holder hope to accomplish with the wealth;b.The relationship between wealth and social or personal considerations; andc.Mission-based or philanthropic activities.

Dimension 1.2: Define roles and responsibilities of decision-makers Leadership Behavior: Competent

Standard

The Standards Director:

a.Defines in writing the roles and responsibilities of each decision-maker and service provider; and b.Confirms that each decision-maker and service provider demonstrates an awareness of their role and responsibilities.

Dimension 1.3: Brief decision-makers on objectives, standards, policies, and regulations Leadership Behavior: Procedural

Standard

The Standards Director:

•Defines in writing fiduciary best practices to be followed by all persons serving in a fiduciary capacity;•Ensures the wealth holder is tax compliant (complying with appropriate standards);•Ensures that succession plans are in place for the wealth holder;•Ensures that reasonable provision is made for succession for those providing advice or service to the wealth holder; •Secures from legal counsel the appropriateness of wills, charters, trust instruments, appointments of successors, and similar instruments effectuating succession for the wealth holder; and•Establishes or confirms there is a process in place periodically to review the succession plan for the wealth holder, and to review succession plans that are in place for others.

Dimension 2.1: Identify sources and levels of Risk Leadership Behavior: Prudent

Standard

The Standards Director prepares, monitors, and maintains a written statement which defines the wealth holder’s sources of risk, and the wealth holder's tolerances to each, in terms of:

•Financial risks•Tax and estate risks;•Family governance risks; •Hazard risks; •Operational risks; and•Social, relationship or entitlement risks

Dimension 2.2: Identify Assets Leadership Behavior: Analytical

Standard

The Standards Director prepares, monitors, and maintains a written statement which defines the wealth holder’s assets, in terms of:

a.Liquid assets;b.Illiquid assets;c.Business assets; andd.Human capital.

Dimension 2.3: Identify Time Horizons Leadership Behavior: Patient

Standard

The Standards Director prepares, monitors, and maintains a written statement which defines the Wealth Holder’s time horizon for the management of Wealth (perpetuity; multi-generational).

Dimension 2.4: Identify Expected Outcomes (“performance”) Leadership Behavior: Purposeful

Standard

The Standards Director prepares, monitors, and maintains performance objectives, in terms of:

a.Long and short-term performance;b.Absolute returns and outcomes; and c.Relative returns and outcomes.

Dimension 3.1: Define the strategy that is consistent with RATE Leadership Behavior: Strategic

Standard

The Standards Director defines in writing the wealth management strategy that is consistent with:

•Risk tolerances;•Asset class preferences (taking into consideration the wealth holder’s other assets);•Mission-based or philanthropic objectives (if defined in Dimension 1.1);•Time horizons;•Performance objectives; and•Rebalancing guidelines.

Dimension 3.2: Ensure the strategy is consistent with implementation and monitoring constraints Leadership Behavior: Pragmatic

Standard

The Standards Director: ensures that the asset allocation and investment strategy are consistent with the Standards Director’s implementation and monitoring constraints.

Dimension 3.3: Formalize the strategy in detail and communicate Leadership Behavior: Communicative

Standard

The Standards Director ensures that, for each entity and individual, there is defined in writing a Private Wealth Policy Statement (PWPS).

Dimension 4.1: Define the process for selecting key personnel to implement the strategy Leadership Behavior: Exemplary

Standard

The Standards Director defines a process for selecting money managers, which includes, as a minimum, the following due diligence screens:

a.The money manager has a defined investment strategy that is consistent with the goals and objectives of the wealth holder, and can be understood and monitored by others.b.The money manager provides transparency of investment holdings. c.The same investment management team has been in place for a period commensurate with the period of the performance evaluation.d.Securities in the portfolio are consistent with the stated investment strategy, and are liquid.e.Investment performance has been verified by an independent third-party, and compared to the money manager's peers.f.Investment performance adjusted for risk has been compared to the money manager's peers.g.The money manager's fees and expenses have been compared to the money manager's peers.h.The investment structure (separate account, mutual fund, commingled trust, or hedge fund) is appropriate for the given strategy, and the Standards Director’s ability to monitor the strategy.

The Standards Director also defines a process for evaluating custodians and broker-dealers, which includes, as a minimum, the following:

a.As a best practice, custodians are independent of money managers, except as may be required by trust law, or by the necessity of employing a commingled investment vehicle.b.Custodian can provide appropriate security of assets, with insurance or otherwise.c.Custodial statements provide sufficient detail that the Standards Director can monitor the money manager’s best execution of trades (generation of soft dollars).d.The expense ratio of the custodian’s cash sweep and money market fund is compared to peers.e.The ability of the custodian to provide investment performance reports and tax reporting.

Dimension 4.2: Define the process for selecting tools, methodologies, and budgets to implement the strategy

Leadership Behavior: Disciplined

Standard

The Standards Director defines a process to periodically evaluate the process for selecting tools, methodologies, and budgets to implement strategies.

Dimension 4.3: Ensure that service agreements and contracts do not contain provisions that conflict with objectives

Leadership Behavior: Fair-minded

Standard

The Standards Director ensures that service agreements and contracts with money managers and service providers do not contain provisions that conflict with the wealth holder's goals and objectives.

Dimension 5.1: Prepare periodic reports that compare performance with objectives Leadership Behavior: Diligent

Standard

The Standards Director defines a process to periodically monitor the wealth management strategy to ensure that it is meeting defined goals and objective.

Dimension 5.2: Prepare periodic reports that analyze costs, or ROI, with performance and objectives Leadership Behavior: Accountable

Standard

The Standards Director periodically analyzes all fees and expenses associated with the wealth management strategy, including:

a.Fees paid to money managers, custodians, and investment consultants; b.Brokerage costs, and use of soft dollars; andc.Fees and expenses of service providers.

Dimension 5.3: Conduct periodic examinations for conflicts-of-interest and self-dealing, and breaches of a code of conduct

Leadership Behavior: Genuine

Standard

The Standards Director periodically reviews compensation agreements and service agreements of service providers to ensure that they do not contain provisions that:

a.Conflict with the wealth holder's goals and objectives; andb.Are performance based on short-to-intermediate-term (less than five years) investment results.

The Standards Director also defines in writing an ethics statement, and periodically checks for conflicts of interests. The ethics statement requires all persons involved with managing wealth to:

•Annually acknowledge the ethics statement; and•Disclose all conflicts of interest as they become known.

Dimension 5.4: Prepare periodic qualitative reviews or performance reviews of decision-makers Leadership Behavior: Motivational

Standard

The Standards Director prepares periodic qualitative reviews of money managers and service providers.