Prudent Investing and ERISA: Fees and the Fiduciary Duty of Care
39 Pages Posted: 24 Jul 2015 Last revised: 25 Jul 2015
Date Written: June 1, 2015
This paper shows that, under well-established trust law principles, cost is only one of an array of prudent investing factors a fiduciary must consider under the fiduciary duty of care. This paper then discusses the duty of care under ERISA and shows that ERISA applies a similar duty of care. The duty of care under both trust law and ERISA rejects “least cost” as the governing standard.
Keywords: ERISA, fees, trust law, duty of care, least cost, fiduciary, litigation
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