Fiduciary Management

There are uniform standards of care we live up to at FRS Capital Management.

Know standards, law and trust provisions. Fiduciaries should know their duties and responsibilities and review all documents pertaining to the establishment and management of the investments.
Diversify assets to specific risk/return profile of the client. The client in 401(k) plans is the participant. Are the investment options sufficient to suit all levels of risk?
Prepare an Investment Policy Statement. The preparation of the IPS is one of the most critical functions of a fiduciary.
Use “prudent experts” (money managers) and document due diligence. Fiduciaries will be held to the same expert standard of care and their activities and conduct will be measured against those of investment professionals.
Control and account for investment and administration expenses. There are typically four categories of expenses: investment management expenses, trading and custodial costs, and administrative cost and advisory fees.
Monitor the activities of the “prudent experts”. Periodic reports should be prepared to compare investment performance against an appropriate index, peer group and the IPS.
Avoid conflicts of interest and prohibited transactions. Problem areas include:

- - Certain Company stock transactions.
  - Unsecured loans to officers.
  - Purchase of real estate with plan assets for corporate use.
  - Using plan assets as collateral for a line of credit.
  - Buying art work or collectibles with plan assets and putting them on display.

Talk to us about how we can help you manage your responsibilities as a fiduciary.