What does the final DOL rule mean to Plan Sponsors?
posted by Fisher 401(k) May 24, 2016
The DOL has redefined who is an ERISA fiduciary. As mentioned in our original Conflict of Interest blog posting, a “fiduciary under ERISA is one who does certain functions for a retirement plan that can impact the benefits to plan participants. ERISA fiduciaries are held to a very high standard of care in performing those functions.”
And now, the final rule establishes that an advisor who is paid to provide advice (what stocks or mutual funds to buy or sell), is a fiduciary and therefore is required to put the client’s best interest first.
How do you, a plan sponsor – or any other plan fiduciary – evaluate whether you and your plan participants are getting conflicted advice from your company 401(k) service provider? What about understanding if the fees you and your employees are being charged are reasonable? Or determining that plan participants are getting real value for the fees paid? There are several things to consider when determining if your providers are compliant.
Download the whitepaper to learn more about the final rule and what you should start to think about. Including how your relationships with service providers and advisers may – or should – change. Fisher Investments serves as an “Investment Manager” under Section 3(38) of ERISA, which means we will act as a plan fiduciary and take on the responsibility of designating a menu of investments for participants. You monitor us and the reasonableness of our fees, and we select, monitor and update the plan’s investments. We have had the 3(38) designation since we started offering 401(k) Solutions to Small and Medium sized businesses and are experienced fiduciaries.
We operate our business with the philosophy that 401(k) plan participants should be protected from conflicts of interest and particularly fee-based conflicts by plan fiduciaries.