The effective date of the recent fee disclosure requirements under ERISA 408(b)(2) have increased demand for qualified fiduciary services. In response to this demand, many unqualified advisors are now promoting themselves as a fiduciary solution instead of collaborating with a legitimate fiduciary service provider. Impersonating a fiduciary is a high risk proposition for both the plan sponsor and the advisor. Misrepresenting expertise can be used against the advisor in ERISA legal proceedings. It can also be used against the plan sponsor for failing to act prudently in the selection of a service provider. To mitigate this risk, a plan sponsor should engage in a formal search for fiduciary advisor services using a formal Request for Proposal (“RFP”) process with help from ERISA Counsel, their Auditing Firm or an independent consultant that does not accept engagements as a fiduciary. PlanTools™ offers an automated advisor RFP service…the “ERISA Advisor Evaluator.” It is also important that a plan sponsor understand the fiduciary roles an advisor can play in a successful plan before beginning the process. The attached, article, “What Type of Fiduciary Are You” will provide a basic understanding of the primary fiduciary roles an advisor may offer. To access the article
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