Why might a trust committee exclude an issuer from its list of accredited investments?

The best answer is that a trust committee may exclude an issuer from its list of accredited investments primarily because the issuer does not meet official criteria. This reflects the fundamental principle of ensuring that investment selections align with specific regulatory or organizational standards. In the context of UITFs, accredited investments must meet particular requirements that validate their eligibility based on their compliance with financial regulations, risk assessments, and governance standards.

While personal histories or subjective assessments of an issuer may play a role in the decision-making process for some committees, the priority and rational basis for exclusion are rooted in whether an issuer meets established, objective criteria. Financial stability and market history are indeed important factors in evaluating an entity’s risk profile, but they would align more closely with criteria-driven assessments rather than personal grievances. Thus, the decision to exclude an issuer typically hinges on objective factors rather than personal feelings or experiences.