Page 427 - DCAC Feb 2026 Files

Predatory Rollover Takeaways

• Plan sponsors should consider reviewing recordkeeper agreements to ensure participant data is not being

used to cross-sell other products and services to participants.

• Other recordkeepers, and advisors/consultants, are engaged in this practice too.

• Did you hire your recordkeeper or consultant to sell investment management services and/or proprietary

products to participants?

– If so, did you conduct due diligence on the methodology, philosophy, services provided and expenses?

Is this documented?

– For most in these arrangements, the answer is “NO” and presents liability.

• When plan sponsors are faced with litigation … we have observed that plan providers immediately seek to

be dismissed, leaving plan sponsors with responsibility, and liability, for monitoring providers.

• AVOID conflicts of interest!

• Most Importantly: Document your due diligence – without it, your defense is weakened.

© 2026 Innovest Portfolio Solutions, LLC 11