CAPTRUST, one of the nation’s leading independent retirement and wealth management firms, spoke with Gardere Partner Michael A. Abbott about Employee Retirement Income Security Act 3(38) fiduciary agreements and how they affect the investment-related duties for plan sponsors.
“While engaging a 3(38) lessens your investment-related responsibilities and risk, it doesn’t absolve you completely or allow you to abdicate all investment fiduciary responsibilities,” said Mr. Abbott. He also added that even with an appropriately structured 3(38) arrangement, sponsors “still have the responsibility to monitor their 3(38) and be aware of the ERISA-related liability associated with hiring, monitoring, and, if needed, replacing them.”
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