If permitting non-fiduciaries (participants) to control trust assets is not consistent with prudent and correct fiduciary principles, why do so many plans permit it?
The retirement industry is widely controlled by the mutual fund and brokerage industries. These companies would normally be barred from the retirement plan industry because they are technically not fiduciaries. Due to an exemption received by the Department of Labor, they are permitted to not only participate in the 401(k) and retirement plan industry, but have eventually come to control it. This control has enabled them to introduce certain non-fiduciary practices that might be suitable for individual investors outside of a company-sponsored retirement plan, but are not appropriate for participants inside a plan. Those retirement industry practices that do not meet fiduciary standards should not be permitted. The G Fiduciary Plan embraces and endorses pure fiduciary practices. Nothing more, nothing less.
Related Questions
- If permitting non-fiduciaries (participants) to control trust assets is not consistent with prudent and correct fiduciary principles, why do so many plans permit it?
- What if a Court orders the Trust Assets into the control of the Court?
- Why should anyone transfer control of assets to a trust institution?
