In an environment dominated by complex fiduciary issues and risk, organizations
with 401(k) plans, defined benefit plans, endowments and foundations find themselves
with greater and greater exposure. The following survey of critical fiduciary functions
has been developed to help determine whether you and your organization may be at
risk.
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1. The investment fiduciaries (Investment Stewards, Investment Advisors and Investment
Managers) have acknowledged their fiduciary status, duties, chaired positions and
responsibilities in writing. |
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Yes
No
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2. Your investment committee meets on a quarterly basis and monitors its service
providers using a recognized benchmark. |
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Yes
No
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3. Your investment committee documents its provider and investment selection decisions
and has performed a provider search or review within the past 2 years. |
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Yes
No
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4.Your investment committee oversees and manages potential conflicts of interest. |
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Yes
No
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5. Your investment committee has a written investment policy. |
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Yes
No
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6. Your written investment policy has been updated in the past 2 years. |
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Yes
No
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7. Your investment committee prepares periodic reports which compare investment
performance against an appropriate index, peer group, and investment policy objectives. |
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Yes
No
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8. The investment committee demonstrates its understanding of all the various ways
in which its providers receive fees, including revenue sharing, soft dollar, administrative,
and fund management. |
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Yes
No
*
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9. ERISA plan respondents: The plan sponsor intends to satisfy ERISA’s protection
for its fiduciaries from claims for investment losses incurred by plan participants.
To achieve this, its 404(c) and Pension Protection Act processes have been reviewed
within the last 12 months. |
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Yes
No
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10. The investment committee has evaluated the plan’s funding strategy and identified
the sources, timing, distribution, and uses of cash flows.
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Yes
No
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