Article On Prudent Investing And ERISA

Melanie L. Fein (Fein Law Offices) recently published an article entitled, Prudent Investing and ERISA: Fees and the Fiduciary Duty of Care. Provided below is an excerpt from the article:

This paper addresses the treatment of investment costs—including fees and compensation—under the duty of care as embedded in the Uniform Prudent Investor Act and other statements and codifications of the law of trusts. This paper shows that, under well-established trust law principles, cost is only one of an array of prudent investing factors a fiduciary must consider under the fiduciary duty of care. This paper then discusses the duty of care under ERISA and shows that ERISA applies a similar duty of care. The duty of care under both trust law and ERISA rejects “least cost” as the governing standard.