Herein lies the potential for a direct conflict of interest. This applies generally to all proxy voting in commingled portfolios.
Tag "fiduciary"
All kidding aside, Valentineās Day is more than cards, candy, and Cupid. Itās about renewing a vow to treat each other with the highest fiduciary standard.
Plan sponsors need to think about it in these terms: Does it make sense to have a pork-belly ETF on a 401k investment menu? How about orange futures?
The process of transferring assets is not without its own liabilities. The exact nature of the fiduciary risk depends on the nature of the transfer.
CITs can only be offered within the confines of a trust relationship. That means the plan itself might be structurally different than one that has an investment menu limited to mutual funds.
In the spirit of the season, one might even think of this as ātrickingā employees to save. Plans sponsors are already using these tricks.
The DOL seems to use the same metric that it earlier employed in its statement on the Fiduciary Rule. Still, the Advisory Opinion is very precise in what it allows. Citi will have to tread carefully to not cross the line into the realm of fiduciary.
These Classic Movies (Unknowingly?) Promote The Fiduciary Standard
It seems like each decade produces a major box office hit that exudes fiduciary. This whole ābest interestā thing seems to have caught on in Tinseltown. More recent movies have added a good dose of the āhonestyā part of fiduciary.