What Actions Should Fiduciaries Consider?
• Contacting the mutual fund to obtain information about trading practices and the fund’s responses to the investigations. • Contacting the plan’s advisors to determine the potential effects of the trading activities and investigations on the financial soundness of the funds and their performance. Funds under investigation may continue to be sound investment choices under all the facts and circumstances, or they may not. But the fiduciary must have the information available to make a reasoned decision one way or the other. • Monitoring class action lawsuits, should they be filed. The decision to participate in a lawsuit or settlement also is subject to fiduciary standards. The cost of participation must be weighed against the likelihood and potential amount of any recovery. What Information Should Be Provided to Participants? ERISA requires fiduciaries to provide participants with information about elimination of existing investment choices and replacement with new ones. Before this st
