Most providers don’t stumble into fiduciary exposure intentionally. They do it by trying to be helpful.
Answering “just one more question.” Suggesting a workaround. Coordinating between payroll and HR. None of this feels like fiduciary conduct in the moment. Over time, though, it adds up.
ERISA doesn’t care whether you meant to act as a fiduciary. It cares whether you exercised discretion or influence over plan decisions. The line between education and advice is thinner than many providers realize, especially with smaller plans that lean heavily on outside help.
This is the provider’s blind spot. The more knowledgeable and responsive you are, the easier it becomes for a sponsor to rely on you. Reliance is flattering—but it can also be risky.
The solution isn’t disengagement. It’s structure. Providers should define how they help, how advice is framed, and where decisions clearly remain with the sponsor. Written follow-ups, disclaimers, and consistent messaging are not bureaucratic obstacles—they are protective tools.
Ironically, the providers who help the most effectively are often the ones who say “no” the most clearly. They know where their role ends, and they communicate that boundary early.
Helping is good. Helping without limits is not.
