Plan fiduciaries must be diligent in monitoring service provider
fees and investment options, and, when necessary, removing
underperforming investments and service providers. Two recent
developments highlight these obligations.
DEPARTMENT OF LABOR RE-PROPOSES FIDUCIARY RULE
In April, the Department of Labor ("DOL") reissued
proposed regulations that, if finalized, would significantly expand
the definition of "fiduciary" under ERISA by changing the
rules for providing investment advice.
Implications for Plan Sponsors.
Plan sponsors do not need to take action in response to the
proposed regulations.
The proposed regulations most significantly impact individuals
who provide investment advice or services to employee benefit plans
or IRA owners and have previously denied fiduciary responsibility.
Investment advisors who are already fiduciaries who receive direct
compensation and plan fiduciaries (e.g., the named fiduciary, the
plan sponsor and the plan
