You knew the Atkins diet craze was a big thing when a company liked Kraft started offering a low carb variety of Oreo. You knew gluten free products were a big thing when you saw well known company like General Mills tout their gluten free nature of their Chex cereal.
For years, ERISA §3(38) fiduciary services where the advisor assumes the liability of the fiduciary process of a retirement plan by exercising discretionary control has become a bigger player in the marketplace. Thanks to 401(k) litigation, fee disclosure regulations, the nature of businesses to outsource function, and the new fiduciary rule, §3(38) is gaining traction. Now we know it’s a big deal when a company like MassMutual starts rolling out a §3(38) service through Envestnet Retirement Solutions called Fiduciary Assure. Based on the nature of MassMutual’s bundled 401(k) business, it should be interesting what type of investments that Envestnet will add to the fund lineups of the plans they will have discretionary control on.
MassMutual and other providers maybe late to the §3(38) party but their appearance in the marketplace will add more traction to ERISA §3(38) services which is a positive development for retirement plans.