The courts have recognized being an ERISA Fiduciary as “the highest duties known to law” - Donovan v. Bierwirth

The DOL has stated on their website, “The Employee Retirement Income Security Act of 1974, or ERISA, protects the assets of millions of Americans so that funds placed in retirement plans during their working lives will be there when they retire.”

In 1974, ERISA was written into law to protect participants in Defined Benefit (pension) plans.

The 401k as we know it did not exist until 1981!

Many advisers shunned the ERISA requirements and have advised and traded “held away” 401k accounts while never complying with ERISA.

Many advisers don’t even their duties required under ERISA.

In the past, there was not much “legal” worry for the advisors.

This all changed in 2008!

LaRue v. DeWolff, Boberg & Associates, Inc, put all advisors on notice.

For the first time, the Supreme Court ruled that an individual had the right to sue for breach of fiduciary duty and to recover any losses due to the alleged breach.

The courts recognized that Defined Contribution plans, like the 401k, were participant driven, and each participant would be granted the right to sue.

If an adviser breaches their duties under ERISA, they can be held personally liable for restoring the losses, returning any fees, a 6% excise tax and any other remedy the court deems.

The plaintiff does not need to prove the advice was “unsuitable” or not in their “best interest”.

They just need to prove the adviser breached their duties as prescribed by ERISA!

And many advisers do not know what their duties are under ERISA.

This is why the largest financial institutions in the country DO NOT provide advice to “held away” 401k accounts!

This is what provides a tremendous opportunity for the advisers that understand and follow ERISA law.

They can literally thrive where the largest institutions cannot!

To learn more, please attend a Live Demo (Thursdays at 1pm EST)

The Employee Retirement Income Security Act of 1974: