DOL Working Group Recommends Required Investment Management Knowledge of Fiduciaries

The Department of Labor (DOL) recently published the Report Of The Working Group On Prudent Investment Process, which sought to help fiduciaries properly execute their responsibilities by examining current issues regarding prudent investment process of defined benefit and defined contribution retirement plans. The report offered five recommendations, including greater expectations of fiduciaries. Specifically, the report recommends requiring fiduciaries to acknowledge a responsibility to have a working knowledge of investment management and risk management concepts. This follows suit with the 1996 revision of the prudent “man” rule, to the prudent “investor” rule, which also indicates that fiduciaries are expected to understand prudent investment process.

Innovest offers Trustee Education Workshops through its education division (InSight EBC) that focuses on teaching fiduciary responsibilities, investment and risk management fundamentals, and best practices.  The workshops are customized for each Plan to accommodate their unique structure, objectives and regulatory considerations.  In addition to education, the workshops encourage the development and adoption of a Trustee Education Policy that establishes  specific minimum requirements of every Plan trustee.  We believe that such practices demonstrate a proactive responsible approach toward continuing education and development for fiduciaries.