It’s no secret that many fiduciaries aren’t exactly experts at what they do in their fiduciary capacity. Even if they know what they need to do, the challenge of meeting those responsibilities can be daunting, considering their other obligations.

But now there’s a way to cope with that. Fidelity Investments has launched Third-Party Fiduciary Services, a program to help plan sponsors and advisors who consult on retirement plans with the selection and monitoring of investments while providing increased liability protection.

Sponsors and advisors who want to seek the expertise of either dedicated resources or third-party firms can find what they need through the program, which provides support under both ERISA Section 3(21) and Section 3(38). It links sponsors and advisors who are looking for external fiduciary expertise with their choice of three providers: Mesirow Financial, Morningstar Associates, and Wilshire Associates.

Mesirow Financial, Morningstar Associates and Wilshire Associates and their subsidiaries are not affiliates of Fidelity Investments.

For Section 3(21), the program provides investment selection help to sponsors and advisors. It also offers continuous monitoring of funds, detailed quarterly reporting, and recommendations for removal and replacement of an investment that may no longer qualify. When taken together, these actions help mitigate a sponsor’s risk and liability.

For Section 3(38) investment managers—often hired independently by plan sponsors to make the fund selection decisions for the plan—the program provides an optional offering that allows Fidelity to accept direction straight from those Section 3(38) investment managers. This option ensures that selection decisions are carried out in a timely manner.

The program allows advisors and smaller businesses to seek outside expertise for those fiduciary functions with which they may be unfamiliar, or for which they have little time.

Instant Insights /

New program guides advisors and sponsors on fiduciary obligations

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