For those who believe an Investment Policy Statement (IPS) for an ERISA retirement plan helps reduce fiduciary liability, here’s a nine step process for creating a strong IPS.
Compliance
How old is that 401k Investment Policy Statement? If it hasn’t been updated in a while, chances are it contains language that could get the Plan Sponsor in trouble. Here’s at least one thing you can look for.
It might surprise you to discover the industry’s loudest complaints against the fiduciary standard might also be the strongest arguments for the fiduciary standard.
For all the public comments offered at the DOL’s Public Hearing on the definition of the Definition of Fiduciary, perhaps the most important statement was the one offered by Assistant Secretary to open the hearings.
The SEC’s new Form ADV Part 2 makes it harder for 401k Plan Sponsors to feign ignorance when it comes to conflicts of interest.
Since no individual 401k plan sponsors seem interested in testifying at a hearing about an issue intended to protect them, we’ve provided three possible outcomes from the DOL Fiduciary hearings and their implications for 401k plan sponsors.
Thus were lines drawn in the sand. We’re left to wonder if the tide of time will wash away those lines or merely wash away the sense of urgency for a uniform fiduciary standard.
Was the initial euphoria of proponents of the Fiduciary Standard premature? Read the fine print of the SEC report here and decide for yourself.
The question remains: Do the new DOL mutual fund reporting requirements merely add to the worries of 401k plan sponsors?
“What is intended to help participants, may hurt them as their decisions are driven by confusion and data overload.”
