Fiduciary Liability Protection – A Bridge Over Troubled Waters
In today’s litigious society, plan sponsors are rightfully concerned about the liability inherent in offering a 401k plan. And the individuals responsible for those plans (its fiduciaries) are increasingly aware of their own personal liability.
Plan fiduciaries have a duty to make sure the plan is compliant with all federal regulations, including ERISA. In addition, plan fiduciaries have a duty to offer investment choices that can provide sufficient diversification and have ‘reasonable’ fees.
As a Registered Investment Advisor (RIA), Madden Funds Management (Madden) can help provide fiduciary liability protection to a plan and its fiduciaries. A Registered Investment Advisor, by definition, is a fiduciary to your plan. This means you have an advisor in a co-fiduciary position to help guide you. This is far different from the standard of ‘suitability’ that brokers or insurance company representatives are held to.
Madden is an independent advisory firm. We are not owned or controlled by any bank, insurance company or brokerage firm. We are able to choose the very best investment options and administrative partners without any underlying biases.
Having your plan advisor as a co-fiduciary does not absolve a plan sponsor of all responsibility, it does, however, shift the fiduciary burden of investment selection, management, and monitoring to the advisor.