As a retirement plan provider, you want to offer your employees an opportunity to save for retirement, but managing that plan can be challenging, especially in today’s world of ever increasing regulation. You want what is best for your business and your employees, but you also want to minimize the amount of fiduciary liability you take on in offering this valuable benefit. That’s why you should consider turning to a trusted partner in fiduciary responsibility to help guide you through the landscape of corporate retirement plans.

Fiduciary Responsibility

Fiduciary responsibility, in this case, refers to the obligations of those individuals in charge of prudently administering a plan and managing its assets. This includes expertise on a variety of different topics and adherence to processes that are documentable and repeatable to ensure that Employee Retirement Income Security Act (ERISA) standards are being met. If those standards are not met, fiduciaries can potentially be held personally liable for losses experienced by the plan. For areas where expertise is lacking, a third party with greater expertise should be considered for the role in order to limit liability, which is where FinTrust can come in.

FinTrust Investment Advisors can work with you on your retirement plan in two different capacities, each of which results in a different level of fiduciary responsibility being retained by you as the plan sponsor. FinTrust can serve as either a 3(21) Investment Advisor or as a 3(38) Investment Manager.

Investment Advisor

By selecting FinTrust as the 3(21) Investment Advisor on your retirement plan, fiduciary liability is shared as co-fiduciaries. We will work alongside you in a consulting capacity in order to assist you in drafting an Investment Policy Statement, proposing an initial investment lineup, recommending mapping strategies, and monitoring fund performance on an ongoing basis. Due to our independence, we are not restricted to certain investments, nor do we have any proprietary investments that would cause conflicts of interest. Our unbiased application of best-practices will help to ensure that your fiduciary responsibilities are being met.

If you are looking to further reduce your personal fiduciary liability, consider hiring FinTrust as a 3(38) Investment Manager instead. Contrary to the 3(21) Investment Advisor where we would be providing you with advice and recommendations while decision making ultimately remains your responsibility, the 3(38) role gives us discretion to select the fund lineup and make any necessary investment changes to the plan as we see fit, as long as those changes are in line with the Investment Policy Statement that we will independently draft. In doing so, you are minimizing your investment-related fiduciary liability by shifting it to FinTrust.

The size and complexity of your plan and your desired level of involvement with the investment related duties of the retirement plan will ultimately help determine which type of fiduciary support to choose. At FinTrust Investment Advisors, we have the capability to serve in either role and would be happy to discuss with you in greater detail the benefits of each as they apply to your company’s unique retirement plan needs. Submit a contact form, or call us at 864.288.2849.

Menu