It’s too easy for plan sponsors to get lost in the weeds when dealing with plan minutia. Yes, “the buck stops here” reality can overwhelm many. Delegation is the key. It’s also the Achilles Heel. This is where the magic word emerges.
Tag "liability"
![‘Fiduciary’ Is The Best Practice 401k Plan Sponsors Can No Longer Ignore](https://fiduciarynews.com/wp-content/uploads/2024/07/checklist-1956737_1920-660x395-1-505x306_c.png)
![Exclusive Interview: Jerry Schlichter Says 401k Plan Sponsors Should ‘Peel The Onion’ On Fees](https://fiduciarynews.com/wp-content/uploads/2024/06/Jerry-Schlichter-2024-660x395-2-505x306_c.jpg)
“Industry participants also argue that the rule transforms one-off transactions into fiduciary relationships in violation of the common law, but the common law of the states is divided on this, and there is a need for a federal standard regulating investment advice fiduciaries.”
![7 Opportunities 401k Plan Sponsors Have To Improve Plan Efficiency And Effectiveness](https://fiduciarynews.com/wp-content/uploads/2024/05/eye-1435565-660x395-1-505x306_c.jpg)
This isn’t a compliance audit, it’s an operating efficiency audit. That covers plenty of ground, from technology to benchmarking the value offered by the service provider.
![The American Airlines ESG Fiduciary Case Exposed The Problem With Mandated Proxy Voting (And More)](https://fiduciarynews.com/wp-content/uploads/2024/03/scam-pexels-mikhail-nilov-6964369-scaled-505x306_c.jpg)
Herein lies the potential for a direct conflict of interest. This applies generally to all proxy voting in commingled portfolios.
![401k Plan Sponsors Must Be Wary Of Fiduciary Liability Associated With Bitcoin ETFs](https://fiduciarynews.com/wp-content/uploads/2024/01/bitcoin-4205661-Image-by-PIRO-from-Pixabay-660x395-1-505x306_c.jpg)
Plan sponsors need to think about it in these terms: Does it make sense to have a pork-belly ETF on a 401k investment menu? How about orange futures?
![Plan Sponsor Worries About 401k To IRA Direct Transfers](https://fiduciarynews.com/wp-content/uploads/2024/01/mime-covering-eyes-1906501-660x395-1-505x306_c.jpg)
The process of transferring assets is not without its own liabilities. The exact nature of the fiduciary risk depends on the nature of the transfer.
![DOL Approves Citi’s ‘Diverse Asset Program’ for 401ks—What Could Go Wrong?](https://fiduciarynews.com/wp-content/uploads/2023/10/113-pexels-george-becker-374918-660x395-1-scaled-505x306_c.jpg)
The DOL seems to use the same metric that it earlier employed in its statement on the Fiduciary Rule. Still, the Advisory Opinion is very precise in what it allows. Citi will have to tread carefully to not cross the line into the realm of fiduciary.
![Ideas From ‘Beyond Fiduciary’ Hint At The Future Of 401k](https://fiduciarynews.com/wp-content/uploads/2023/08/horizon-1458419-660x395-1-505x306_c.jpg)
The antiseptic compliance regime spelled out by the DOL and ERISA has to date defined fiduciary services. Perhaps, if we’re going to consider what is “beyond” that sterile definition, we might want to go back to the future. In a sense, rediscovering where “fiduciary” initially came from might suggest where it is headed.