“I selected the Target Date Funds to reduce my fiduciary liability. Are you telling me this actually raises my fiduciary liability?” The panel merely looked at each other and laughed.
Tag "DOL"
I wish we’d spend a tenth of the time we spend indoctrinating our kids about drug use and sex helping them understand the basics of money and investing.
For 401k plan sponsors and fiduciaries, this seismic events delivered out of the nation’s Capital on July 15 signals the start of significant changes in the way they operate their plans.
Why some target date investors should be furious, why expecting 401k plan sponsors to comment on a change they don’t understand would be asking far too much and just see what he says about 12b-1 fees.
These next three months may prove a watershed for 401k plan sponsors as new rules will dramatically alter how 401k plan sponsors manage their companies’ retirement plans.
Where’s the best place for the 401k plan sponsor to go for free help on their fiduciary duties and responsibilities?
If the DOL requires the 401k plan fiduciary to ignore a fund’s investment performance, but the SEC still requires funds to disclose that performance, which will 401k investors choose? More importantly, who’s left holding the liability bag?
Will Congress, the SEC and the DOL upgrade the current fiduciary standard to the trust model used by bank trust departments so successfully for more than a century?
Should indirect fees matter? Academics may argue, but regulators will have the final say. Unfortunately, different definitions of fees only confound the ERISA fiduciary.
Under the DOL’s proposed Investment Advice Rule, if a plan enters into a prohibited relationship with a vendor – or if an existing relationship now becomes prohibited – fiduciary liability rises. Can the 401k fiduciary afford to ignore these critical issues?
