First, there was the call for an Investment Policy Statement (IPS). Then advisors were touting the need for an Education Policy Statement (EPS). What next?
The problem with these statements is they’re not just creeds, these are hoops that an advisor has set up, that a plan sponsor has to jump through. These are policies that the plan sponsor voluntarily put in place and they have to follow them. The problem is if they don’t, it’s a breach of their fiduciary process.
Sometimes, volunteering things isn’t a wise move for plan sponsors, so I ask advisors and other providers to ponder whether these additional statements are worth it.
