Should a 3(38) Listen?

Just because a plan level 3(38) Investment Manager has full investment discretion over a retirement plan menu doesnt mean they have to operate in a black box.  This common misconception may come from seeing so many 3(38) fiduciaries simply providing a one-size-fits-all investment menu that is the same for every plan.  That type of menu is based on a very efficient model for the 3(38) fiduciary and can have its benefits, but not so much for the plan sponsor wanting attention paid to their specific needs and circumstances.

At Fidelis Fiduciary Management, we believe the best 3(38) fiduciaries out there listen, then create the final menu unique to each plans needs.  Nothing in ERISA suggests a 3(38) fiduciary cannot listen to what the Plan Sponsor and their advisor have to say about the needs and goals of the plan or take demographic information into consideration when creating a plan investment menu.  

National in scope, Fidelis Fiduciary Management is one of the few advisory firms in the country to have received certification from the Centre for Fiduciary Excellence (CEFEX), with specific certification for ERISA 3(38) fiduciary services, and we take pride in creating unique, comprehensive investment menus, in consultation with the plan sponsor and primary advisor on the plan.

David M. Montgomery, AIF®, CRPS®

©2015 Fidelis Fiduciary Management, All Rights Reserved.

No strategy assures a profit or protect against loss.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.

For Advisors and Plan Service Providers use only — Not for use with Plan Sponsors, Participants, or the General Public. This information was developed as a general guide to educate advisors and plan service providers, but is not intended as authoritative guidance or tax or legal advice. Fidelis Fiduciary Management does not warrant and is not responsible for errors or omissions in the content of this newsletter.