Broker Check

Fiduciary Investment Services

Valiant Retire offers a range of fiduciary services as business owners face increasing regulatory requirements. Business owners have a lot of responsibilities but one of the most nebulous may be their fiduciary responsibility for the selection of investment options within their company’s qualified retirement plan. While the Employee Retirement Income Security Act of 1974 (ERISA) guidelines identify two different types of investment fiduciaries in sections 3(21) and 3(38), it is often difficult for plan sponsors to determine which option is the best fit for their unique situation.

Client Centered

3(21) Co-fiduciary – A business owner may choose to hire a registered investment adviser (RIA) to provide plan investment advice (among other potential plan services). In this type of arrangement, the adviser shares fiduciary responsibility with the plan sponsor, and may provide investment analysis, assistance with the development of an investment policy statement or other means of selecting appropriate investment options. However, it is ultimately the plan sponsor’s decision as to which investment options to include in the plan. It is important to note that this type of arrangement does not remove a plan sponsor’s fiduciary responsibility or liability for the selection and monitoring of investment options.

Client Centered

3(38) Investment Manager – The business owner may opt to hire an RIA to act as a 3(38)- investment manager. This gives the adviser the authority to select and replace investment options in the plan at their discretion, with or without consulting with or receiving the approval of the plan sponsor. With this type of agreement, the plan sponsor transfers responsibility and accountability for the selection of the plan investment options to the RIA, but the plan sponsor retains responsibility for selecting and monitoring the 3(38)-investment manager.

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