The Principal Expands Investment Fiduciary Services

January 9, 2012 ( – The Principal Financial Group expanded its investment fiduciary support to include ERISA 3(21) and 3(38) fiduciary services. 

The fiduciary services will be provided by Wilshire Associates Incorporated. The new services will enhance current support by providing a level of fiduciary protection for selection and monitoring of investment options for retirement plans.

All financial professionals will have the option of making these Wilshire-supplied services available to their clients, including RIAs, who may wish to supplement their current services to clients.

The 3(21) and 3(38) fiduciary services:

• Include coverage across multiple plan types;

• Complement the due diligence process already in place for hiring and monitoring managers of Sub-Advised Investment Options available through The Principal; and

• Are flexible, allowing the fiduciary to choose from services which address the following areas of concern: Broad Range Requirement under 404(c); Qualified Default Investment Alternatives and Prudent monitoring on an investment-by-investment basis.


The financial protection available through Wilshire covers plan sponsors. A level of indemnification protection through Principal Life Insurance Company may extend to financial professionals whose clients use ERISA 3(21) and/or 3(38) fiduciary services provided by Wilshire.

In addition, to further assist financial professionals and their clients, The Principal also created a new fiduciary guide that explains in practical terms what it means to be a fiduciary under Section 3(21) or an investment manager under Section 3(38).