A new legal filing could cause fiduciaries to rethink plan vendors’ use of participant data and these vendors’ cross-selling other financial products to plan participants.
Allen Steinberg of Principal Review discusses the new challenges regarding the amended complaint against NYU. As he notes, the new claims prompt plan sponsors and advisors to broaden their fiduciary role and responsibilities. Specifically, these new challenges include:
- Use of participant data and sale of ancillary products,
- Outside fiduciaries’ being held responsible for fiduciary breaches.
What Does This Mean for You?
In light of these recent claims, it is important that plan sponsors consider hiring retirement plan consultants that are not cross-selling services, such as private wealth management to participants. By entering into contracts with an advisor that may have an inherent conflict raises the plan sponsor’s fiduciary liability.
Read Allen’s take on the updated claims against NYU:
If you have any questions regarding these legal implications, feel free to contact us at info@planpilot.com.