Need a credible 401k advisor to assist plan sponsors in their fiduciary duties to participants? There’s an app (or rather service) for that.
The Wagner Law Group, headed by high-profile ERISA attorney Marcia Wagner, has launched a new “advisor search consulting service.”
“The fiduciary responsibility of ERISA-governed retirement plan sponsors to select, monitor and terminate the investment choices available to plan participants is enormous, and has led plan sponsors to seek assistance from outside investment advisors,” the firm notes.
However, it adds “that retaining an investment advisor to choose plan investments, however, does not absolve retirement plan sponsors from the fiduciary duty related to plan investments, and, in and of itself, is an action that must meet ERISA’s stringent fiduciary standards.”
Alluding to the high number of cases involving claims of breach of ERISA fiduciary duty, including those against Gucci, Home Depot and many elite colleges and universities, among others, and the fact that they continue to grow, the firm’s advisor search consulting service is tailored to assist retirement plan sponsors with the search for and selection of appropriate investment advisors in a manner designed to ensure compliance with ERISA fiduciary obligations.
Led by Wagner attorney Thomas E. Clark, Jr., the advisor search consulting program consists of three stages:
- Analysis of Plan Needs—Plan decision makers are surveyed to identify the necessary services to be provided and the desired advisor qualities. The universe of advisors is narrowed and a Request for Proposal (RFP) to possible candidates is developed. Candidates may include pre-screened advisors and/or those requested by the client.
- RFP Process—Candidates receive the RFP electronically and are asked to provide documents such as a sample investment monitoring report. Responses are analyzed, and two to four finalists are identified.
- Advisor Selection—The finalists receive an additional RFP electronically and are asked for more in-depth information and additional documents such as copies of applicable insurance policies. Appropriate finalists are asked to make an in-person presentation to the client. The Wagner Law Group acts as a fiduciary in recommending finalists and assists in the negotiation and execution of the service agreement.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
