Cambridge Fiduciary Services’ Roger Levy deconstructs Brotherston v. Putnam Investments.
The video titled “Recent Fiduciary Breach Case Has Major Implications for 401k Advisors,” 401K Specialist interviews Roger Levy at the Fi360 Conference in Nashville. They discuss the Brotherston v. Putnam fiduciary breach lawsuit involving a 401(k) plan. The case raised the critical issue of causation—proving that a loss was directly caused by a fiduciary breach. The Court of Appeals ruled that the burden of proof lies with the plan sponsors, given their access to relevant data. The case has significant implications for the advisory industry, particularly regarding the responsibility of investment advisors under 3(38) protections.
The case may reach the Supreme Court, and its outcome could have a significant impact on the industry. As of the video’s date, the Supreme Court was considering whether to take up the case.
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