Why should I hire a Fiduciary?
The employer is already the fiduciary, not your record‐keeper. Granite Group believes that hiring a discretionary fiduciary is a better opinion than a non‐discretionary fiduciary 3(21) .So why is everyone up in arms about the new
What should I know about my investment process?
Many sell a proprietary product. It is justified by showing you a Morningstar report or a fund fact sheet. In our minds, that doesn’t cut it. Those documents are an opinion (often self‐serving), but not a process adopted by the plan. Hiring a
broker /advisor as a co‐fiduciary does not provide enough protection; the employer ultimately still has to make the decision. What an employer needs to know is, do they have an investment process? Your fund line up should move
beyond the basic reports towards an investment process.
The potential financial risks are great, and the owners/executives need to be actively involved; not only in the establishment, but on the execution of these decisions. The reason is simple:
ERISA litigation has opened up to suits against smaller and mid‐sized companies and plans, including the investment executives.
Why is this important?
The DOL has placed more burden upon the shoulders of the
employer. What the employer needs is a defined, documented,
proven process that is imbedded in the IPS. The recent legal
decisions are not just about having the lowest fee share class
available, but also about how the Employer arrived at the deci‐
sion to place a mutual fund in the investment line up. The Em‐
ployer needs to build a defined and defensible investment pro‐
What can I do to protect myself?
Seek out a professional consultant that can prove and document the investment process! A true professional should have no issue with being a Discretionary Fiduciary 3(38). Hiring a discretionary fiduciary with a consistent process that
can be applied to all fund selections would help reduce the Employer’s exposure, meet the Tibble vs Edison criteria; and it leads the Employer on a path to meet their new guidelines of fiduciary responsibility.
Hire a Discretionary Fiduciary!
For Truth, Transparency and Safety call Ernie Rodulfo: at 203‐210‐7814.