PLANADVISER - November/December 2018 - 42

practice management
Protection for Your Practice
T
The ins and outs of fiduciary liability insurance
he current litigation environment
makes questions about fiduciary
liability incredibly important
advisers to answer.
" The last few years have made
clear that lawsuits against any and all
parties involved with retirement and
welfare plans are here to stay, " says
Lars Golumbic, a principal with Groom
Law Group, Chartered, in Washington,
D.C., and author of an extensive report
on the subject, " Who May Sue You and
Why, " published last year, for global
insurance provider Chubb.
" The need for comprehensive fiduciary
liability insurance is greater than
ever, " he says.
For an advisory business weighing
its insurance needs, the firm's leaders
must digest the fine print and understand
exactly what a potential policy
covers-not to mention how much it
costs.
Challenges Confronting Advisers
According to Golumbic, fiduciary
liability as to employer-sponsored
benefit and retirement plans is one
of the most misunderstood exposures
that company directors, officers,
employees and trustees face. Because
many advisers today explicitly take
on fiduciary discretion over client
assets, they are equally exposed to
litigation, Golumbic says. The exact
terms of advisers' exposure will vary
somewhat based on the structure of
their products and services, especially
depending on which fiduciary status
they take on-3(21) or 3(38) as defined
by the Employee Retirement Income
Security Act (ERISA)-but, in any case,
it will be significant.
" Many fiduciaries fail to appreciate
that they can be held personally liable
for a breach of fiduciary duty, even
when the breach is unintentional, "
Golumbic says. " Moreover, plan fiduciaries
are subject to a very high standard
of care, the highest duty known
for
42 | planadviser.com November-December 2018 Art by Marion Kamper

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PLANADVISER - November/December 2018

Table of Contents for the Digital Edition of PLANADVISER - November/December 2018

Weathering Audits
Protection for Your Practice
The Case for Roths
SEC on Rollovers
ERISA Section 409(b)
403(b) Litigation Update
PLANADVISER - November/December 2018 - C1
PLANADVISER - November/December 2018 - FC1
PLANADVISER - November/December 2018 - FC2
PLANADVISER - November/December 2018 - C2
PLANADVISER - November/December 2018 - 1
PLANADVISER - November/December 2018 - 2
PLANADVISER - November/December 2018 - 3
PLANADVISER - November/December 2018 - 4
PLANADVISER - November/December 2018 - 5
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PLANADVISER - November/December 2018 - 30
PLANADVISER - November/December 2018 - 31
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PLANADVISER - November/December 2018 - 33
PLANADVISER - November/December 2018 - 34
PLANADVISER - November/December 2018 - 35
PLANADVISER - November/December 2018 - 36
PLANADVISER - November/December 2018 - 37
PLANADVISER - November/December 2018 - Weathering Audits
PLANADVISER - November/December 2018 - 39
PLANADVISER - November/December 2018 - 40
PLANADVISER - November/December 2018 - 41
PLANADVISER - November/December 2018 - Protection for Your Practice
PLANADVISER - November/December 2018 - 43
PLANADVISER - November/December 2018 - The Case for Roths
PLANADVISER - November/December 2018 - 45
PLANADVISER - November/December 2018 - SEC on Rollovers
PLANADVISER - November/December 2018 - ERISA Section 409(b)
PLANADVISER - November/December 2018 - 403(b) Litigation Update
PLANADVISER - November/December 2018 - C3
PLANADVISER - November/December 2018 - C4
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