Stopping short of requiring fiduciary education by plan sponsors, the DOL is asking more questions about how companies are training their committee members, according to a report by BNA citing attorneys at the law firm of Trucker Huss.
Citing two recent investigations, attorneys from the San Francisco law firm said that DOL investigators raised the issue in discussions, not in the closing letter — leading to speculation that higher-level people at the DOL are concerned about the fiduciary education of investment committee members.
Trucker Huss recommends that their clients be prepared to answer the question of whether committee members are receiving fiduciary training, and that language addressing the fiduciary education issue is included in three documents:
• the board of directors resolution establishing the committee
• the committee charter (providing a roadmap for the committee’s activities)
• the investment policy statement
Earlier this year, the law firm of Bryan Cave provided guidance on fiduciary training in response to indications that the DOL was in favor of it and that such training was prima facie evidence of a prudent process.
