May 8, 2018

Diogenes-FG: Heralding Responsible Innovation in Fiduciary Services for Retirement and Nonprofit Trustees

Case ENT-0221
Robert Patterson
John Whitworth

Diogenes pioneered the use of technology to support trustees and boards in their role as fiduciaries of employee retirement funds. Typically, a multinational corporation with operations in 30-40 countries may have hundreds of pension plans, each with their own characteristics. Common among all of them is the opportunity to demonstrate conformance with globally recognized fiduciary best practices. The Diogenes Fiduciary Compliance System gathers and curates all relative documents and compares that information with the 21 practices and the 82 criteria of the ISO 9000 based Fi360 Prudent Practices. Using sophisticated statistical techniques including Bayesian Inference, the software continuously evaluates conformance to the Prudent Practices and reports on areas which need to be addressed. Reporting by exception, the user starts with a global view and can drill down by region, country, company, and plan to review the issues. A continuous audit log provides management with the information to support their role as fiduciaries by continuously monitoring their investments as required by the US Supreme Court’s guidelines in the 2015 Tibble v. Edison International case. Board members can rest easily knowing that management meets the highest level of quality in support of their employees and shareholders.