Fiduciary Issues
Chapters in this video
- 0:00 Adam the advisor and personal liability for plan losses
- 1:37 What ERISA covers: private-sector plans and the big exemptions
- 2:28 Fiduciary status: functional definition, not job title
- 3:16 The four core duties: loyalty, prudence, diversification, plan compliance
- 4:01 Prudent expert vs prudent person: the exam's favorite trap
- 5:11 Process over outcome: documentation and the ongoing checklist
- 6:32 The terrifying reality: restoring losses from your own pocket
- 7:01 Rapid-fire exam recap
What this video covers
- Which plans ERISA covers (private-sector employee benefit plans) and which are exempt (government, municipal, and church plans)
- Why fiduciary status under the Employee Retirement Income Security Act (ERISA) depends on function, not title, including the three activity triggers
- The four core fiduciary duties: loyalty, prudence, diversification, and plan compliance
- Why the ERISA standard is prudent expert, not prudent person, and what "familiar with such matters" means on exam day
- How prudence is measured by process rather than outcome, and why documentation protects fiduciaries from market-loss lawsuits
- The ongoing investment checklist: selecting diversified options, considering fees, monitoring and reviewing choices, and removing imprudent investments promptly
- Why fiduciaries face personal liability for plan losses and must restore losses from their own assets when duties are breached
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 66 course also includes adaptive practice questions and spaced-repetition flashcards.