According to a recent press release, the addition follows half of Nationwide’s plan sponsors reporting managing fiduciary risk as one of their top three challenges.
Under section 3(38) of the Employee Retirement Income Security Act of 1974 (ERISA), an investment manager is given authority to direct and monitor investment options for a retirement plan. This new service enables plan sponsors to transfer the responsibility and legal liabilities associated with the selection and monitoring of investment options to IRON Financial, which offers fully independent fiduciary services as a component of its retirement plan platform, providing plan sponsors with relief from investment liability.
The new service also provides support to financial professionals as the industry prepares for new regulations that will require financial advisers to disclose whether they act as a fiduciary and, if so, in what capacity.
“Investment selection and the ongoing due diligence are important, and often intimidating, fiduciary responsibilities for a plan sponsor,” said Anne Arvia, senior vice president of Retirement Plans for Nationwide Financial, in the announcement. “We’re excited to offer this new service, and feel it’s a great addition to our comprehensive lineup of fiduciary tools and services.”
IRON Financial recently received a CEFEX designation from the Centre for Fiduciary Excellence, and the release stated it is one of the first investment advisers globally to achieve this certification.