Fiduciary Obligations
Investment and asset managers generally have a ‘fiduciary duty’ to ensure that their clients participate in Securities Class Actions. This fiduciary duty has become more apparent in recent years, while Securities Class Action growth outside the U.S is expanding rapidly. The volume and international variety of tracking and participation is likely to increase materially throughout the next decade and will become more widely applicable to a greater breadth of portfolio holdings. That, in turn, means that custodians, fund managers and trustees will have to ensure that they are aware of and participate (where eligible) in Securities Class Actions across the world.