La prudencia en los sistemas públicos de retiro en Puerto Rico

Abstract

Financial theory and the prudence rules in fiduciary law are neither parallels nor convergent. The use of the latter in the public compass is limited and confused, and the pertinent laws approved in Puerto Rico so evidence it, in particular, those relative to the administration, operation, and investment in pension plans in the Island. The local courts’ decisions do not analyze the topic and the existing civil codification is ignored. The article examines the laws that require prudence in such public plans in Puerto Rico, clarifies which is a more adequate concept, and offers to evaluate the notion of fiduciary responsibility hand in hand with a theoretical and practical development in investments, that remains in the realm of a few due to its complexity.