Who are ERISA fiduciaries?
Generally, an ERISA fiduciary is anyone who exercises discretionary authority or control over a plan or its assets, or who gives investment advice to a plan or its participants. If you sponsor a 401(k) plan, you’ll most likely have discretion over it in some capacity, and this makes you a fiduciary.
Is an employer a fiduciary under ERISA?
However, when an employer (or someone hired by the employer) takes steps to implement these decisions, that person is acting on behalf of the plan and, in carrying out these actions, may be a fiduciary. The duty to act prudently is one of a fiduciary’s central responsibilities under ERISA.
Which of the following is not a fiduciary responsibility under ERISA?
Fiduciaries under ERISA do not include attorneys, accountants, actuaries, third party administrators, record keepers, individuals who act solely in their professional capacities, and individuals who perform solely ministerial tasks for a plan or plan administrator.
What is fiduciary responsibility for 401k?
In Meeting Your Fiduciary Responsibilities, the DOL lists the general responsibilities of a 401(k) fiduciary as: Acting solely in the interest of plan participants and their beneficiaries and with the exclusive purpose of providing benefits to them; Paying only reasonable plan expenses.
Are all Fidelity Advisors fiduciaries?
When we act in a brokerage or insurance agency capacity, we do not have a fiduciary or advisory relationship with you and our disclosure obligations are more limited than if we did. In general, unless we specifically inform you otherwise, the services offered by our representatives are services offered by FBS.
What is the difference between fiduciary and ERISA?
ERISA fidelity bonds protect the benefit plan participants from loss due to fraud or dishonesty. Fiduciary liability insurance protects the company from legal liability arising from the sponsorship of a plan. If the company is held liable, the policy will pay the defense costs and judgements against the company.
What is an ERISA prohibited transaction?
Prohibited transactions are conflicts of interest that violate ERISA. Plan sponsors and fiduciaries are required to identify and evaluate. conflicts of interest and protect the Plan and its participants from the consequences of those conflicts.
Why was it the DOL instead of the IRS or the SEC that proposed a fiduciary rule for investment advisors for retirement accounts?
The Fiduciary Ruling was brought into effect to protect the interests of clients versus the financial interests of their brokers and advisors. This led to lower commissions for brokers, less income from “churning” portfolios, and increased compliance costs.
Is Ed Jones a fiduciary?
It is important to point out that the Court found Edward Jones to be a fiduciary as a matter of law. That is, the evidence supporting the broker’s fiduciary status was “so powerful that no reasonable jury would be free to disbelieve it… [and is not] susceptible of different interpretations or inferences.”