Fiduciary Responsibility
Frye Financial Center
Creating, Protecting and Preserving Wealth
www.fryefinancial.com
Your Fiduciary Responsibility…
How we can help.
As a retirement plan sponsor and fiduciary, you are obligated to manage risk in compliance with
the law, while providing a cost-effective, financially sound retirement plan. As qualified retirement
plan & ERISA specialists, Frye Financial Center can guide you in the fulfillment of these
responsibilities.
The Employee Retirement Security Act of 1974 (ERISA) defines four basic duties that a fiduciary
must carry out to be in compliance:
Exclusive
benefit rule
Prudent man/expert rule
Investment diversification
Compliance of the plan document
In addition to these basic duties, a fiduciary has other responsibilities relating to participant
communication, document retention and destruction, prohibited transactions, employer security
and real property and bonding.
At Frye Financial Center, we specialize in assisting clients manage the burden of understanding
these complicated requirements. You can rely on us, as your retirement plan consultants, to
provide the expertise, programs and services you need to meet all of your fiduciary
responsibilities.
Our Role As Advisors
At Frye Financial Center…
PROVIDER
REVIEW/
PLAN AUDIT
PLAN
DESIGN
We help you weigh and prioritize retirement
program features and benchmark your provider.
We assist in reviewing your current plan design and can
offer suggestions that seek maximization of your plan
features.
INVESTMENT
CONSULTING
We offer qualitative and quantitative reviews of investments using a
documented process to reduce fiduciary liability.
Employee
Education
Investment We develop a customized strategic education program
for your
Consulting
EMPLOYEE
employees that includes providing investment advice to plan
EDUCATION
participants.*
*Advisory services offered through Linsco/Private Ledger
Who’s an Investment Fiduciary?
A person who…
 Has discretionary authority over plan investments
 Exercises any control over plan assets
 Gives investment advise for compensation
Internal
External
Trustee
Plan Committee
Board of Directors
Officers Responsible
For Investments
RIA’s/Investment
Advisors
Brokers if they offer
Investment Advice
Uniform Fiduciary Standards of Care
TEXT
TEXTprovisions TEXT
1. TEXT
Know standards,
laws and trust
2. Prepare investment policy statement
3. Diversify portfolio assets
4. Use professional money managers (“prudent experts”)
5. Control and account for investment expenses
6. Monitor the activities of service providers
7. Avoid conflicts of interest and prohibited transactions
Frye Financial Center
Consulting Process
Monitor &
Supervise
Rebalance
Step 5
Implement Policy
Step 4
Formalize
Investment Policy
Step 3
Design Optimal
Program
Step 2
Analyze current
situation
Step 1
Copyright 2000. Foundation for Fiduciary Studies
STEP 1-Analyze current situation





Review current plan structure
Analyze current investment and menu options
Compare investment management fees to industry averages
Plan design consultation
Review current education program
STEP 2-Design Optimal Program
Establish Goals & Objectives
– Principal Purpose of the Plan
– ERISA & 404 (c)
Investment Criteria for Hiring/Firing Manager
– Create Methodology
– Implement
Asset Allocation
TEXT
– Current & Model Asset Allocation
– Efficient Frontier & Optimal Asset Allocation
– Asset Allocation Methodology
TEXT
STEP 3-Develop Investment Policy Statement
An Investment Policy Statement should contain:
 Fact Sheet-Investment Committee Members, Consultant, Trustee and
Provider
 Map out goals of the program
 Role of Investment Committee, Consultant and other providers
 Criteria for including/excluding asset classes
 Criteria for including/excluding investment options
 Becomes a living document that can be passed onto new committee
members
STEP 4-Implement Solution
• Determine which asset classes will be available
to participants.
– Can Model Portfolios add value?
• Conservative
• Moderate
• Aggressive
• Select investments in compliance with the
Investment Policy Statement.
STEP 4-Implement Solution
Strategic Education Plan incorporating:
– Enrollment Meetings
– Targeted Education Campaigns
– Ongoing Education/Communication Messages
– Financial Planning, 529 Plans, Roth IRA’s
– Advanced Investment Consulting Services
STEP 5-Monitor and Supervise
Frye Financial Center will provide detailed quarterly
performance reports…
–
–
–
–
Adherence to Investment Policy Statements
Performance versus appropriate style and universe
Risk-return measures
Ongoing review to ensure all risk points along efficient
frontier are covered
– Review of investment fees
The Frye Financial Advantage
While other financial planners, brokers or insurance agents
sell qualified retirement plans, most do not have the
expertise or support in place to offer the comprehensive
servicing Frye Financial Center has been providing our
corporate and non profit pension plan clients for over 25
years. Our team has the skills, experience and ERISA
knowledge to make your plan successful and to help you
avoid any plan-related risk.
Call us today for a complimentary consultation
FRYE FINANCIAL CENTER
20900 West Dixie Highway
Aventura, FL 33180
305-931-3200 office
305-931-9383 fax
www.fryefinancial.com
Creating, Protecting & Preserving Wealth