A 3(21) Fiduciary is an investment advisor that provides either non-discretionary investment services or administrative services to their clients regarding an ERISA qualified plan. However, the client, plan sponsor or business owner are the ones who ultimately make all the decisions regarding the plan.
Duties of a 3(21) Fiduciary
JV Global Capital, as a 3(21) Fiduciary, promises the following services to the client, the plan, and the plan participants:
- We will provide non‐discretionary investment advice to the Client regarding asset classes and investment alternatives available for the Plan in accordance with the Plan’s investment policies and objectives. The Client will have the ultimate authority to regarding any decision when it comes the initial selection, retention, removal and addition of the investment options.
- We will assist the Client in the development of an investment policy statement, also known as the IPS. The IPS establishes the investment policies and objectives for the Plan. The Client shall have the ultimate responsibility and authority when it comes to establishing the policies and objectives and regarding the adoption and amendment of the IPS.
- We will assist in monitoring investment options by providing periodic investment reports that document investment performance, consistency of fund management and conformance to the guidelines set forth in the IPS. We will also make recommendations to remove, maintain, or replace investment options.
- We will provide non‐discretionary investment advice to the Plan Sponsor with respect to the selection of a qualified default investment alternative (QDIA) for participants who are automatically enrolled in the Plan and who have otherwise failed to make investment elections. The Client retains the sole responsibility to provide notices to all of the Plan participants, which is required under ERISA Section 404(c) (5) and 404(a)(5).
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