What action should fiduciaries take?
Plan fiduciaries will have to review the facts with respect to each fund and make a judgment as to whether concerns about mutual fund trading abuses have been adequately addressed. In this regard, DOL stated: The appropriate course of action will depend on the particular facts and circumstances relating to a plan’s investment in a fund. Plan fiduciaries should follow prudent plan procedures relating to investment decisions and document their decisions. The guiding principle for fiduciaries should be to ensure that appropriate efforts are being made to act reasonably, prudently and solely in the interests of participants and beneficiaries. Remember that ERISA prudence is about process. Key to process is follow through and documentation. Fiduciaries should be able to prove that they asked the right questions, deliberated on the answers, and made a rational judgment. It doesn’t have to be the right judgment. It just has to be reasonable, in light of all the circumstances. Also remember, i
