Fiduciary Risk Management
HUB International helps plan sponsors reduce personal fiduciary liability through documented, benchmarked fee and provider analysis, Investment Policy Statement support and 3(21) or 3(38) fiduciary arrangements — building a defensible process before the plan's decisions are ever challenged.
Why It Matters
The litigation risk hiding in your fund lineup
Excessive-fee and imprudent-fund-lineup lawsuits against retirement plans are an established category of litigation, not a hypothetical risk. A plan sponsor who has never documented why their fund lineup and fees were chosen has little to show a court if that process is ever challenged. Courts have consistently looked for a documented process, not a perfect outcome.
HUB's Approach
How HUB builds a defensible fiduciary process
HUB International's fiduciary risk management brings together the fiduciary co-sourcing arrangement and the independent benchmarking a plan sponsor's fiduciary liability depends on most. That includes 3(21) co-fiduciary or 3(38) discretionary fiduciary arrangements that share liability rather than leaving it entirely with the plan sponsor, ongoing fee and provider benchmarking so the plan sponsor knows whether the plan's costs are reasonable and Investment Policy Statement support that documents the reasoning behind fund lineup decisions as they're made. Rather than reconstructing that reasoning after a claim is filed, HUB builds the documented record continuously, through quarterly monitoring and reporting that keeps the fiduciary process current as funds, fees and providers change. For human resources (HR) and finance leaders carrying personal fiduciary liability, this means a plan that can show its work if it's ever challenged, not one that's simply hoping it never is.
Insights for Your Business
Fiduciary risk insights and research
