Page 40 - DCAC December 2024 Files
P. 40

Understanding Fiduciary Responsibilities



                 Common Claims








                 • FEES: Plan sponsor should have considered lower-cost share classes of mutual


                      funds or less expensive vehicles like collective investment trusts or separate

                      accounts.



                 • FEES: Recordkeeper was compensated through asset-based revenue sharing


                      from the funds, but as assets grew, plan sponsor didn’t renegotiate


                      recordkeeping agreement.



                 • FEES: Failure to monitor fees managed account provider paid to recordkeeper.



                 • FEES: Financial advisor was overpaid.



                 • INVESTMENTS: Imprudent selection and failure to periodically benchmark

                      performance.









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