Plan Advisers: Help Plan Sponsors in Fiduciary Litigation While Protecting Yourself

Benefits and executive compensation partner Fred Reish and associate Emily Kile-Maxwell and insurance partner Glenn Merten coauthored an article for the National Association of Plan Advisors about what 3(21), or nondiscretionary, investment advisers can expect when plan sponsor clients are sued, as well as how to prepare.

The authors outline litigation stages after a plan sponsor is sued and steps an adviser can take to protect itself and its clients, minimize the cost and disruption of fiduciary litigation, and put plan sponsors in a position to achieve a successful outcome. They conclude that, though never welcome, plan advisers can use litigation to reiterate to their clients that they keep thorough records, properly document all advice and communications, and always act with their clients’ interests foremost in their thoughts.