3(38) Discretionary Fiduciary Service

Discretionary investment oversight and structured governance support for retirement plan sponsors, serving the Mid-Atlantic region—including Virginia, Maryland, Washington, DC, North Carolina, and Delaware—and clients nationwide.

Headquartered in Richmond, Virginia, we serve clients nationwide. 

Is Your Investment Discretion Properly Structured?

ERISA places responsibility for prudent investment selection and monitoring on plan sponsors. When discretion remains informal or committee oversight lacks structure, fiduciary exposure increases.

A 3(38) fiduciary arrangement formally delegates investment discretion to a qualified investment manager. Authority becomes defined. Monitoring becomes disciplined. Documentation becomes structured.

As part of our broader Retirement Plan Advisory framework, we help plan sponsors determine whether full discretionary delegation aligns with their governance capacity and risk tolerance.

What 3(38) Fiduciary Authority Means

Under ERISA Section 3(38), a qualified investment manager assumes discretionary authority to select, monitor, and replace plan investments within a defined governance framework.

Unlike a 3(21) advisory structure, where recommendations are provided but final authority remains with the committee, a 3(38) fiduciary accepts responsibility for investment decision-making.

Delegating discretion is not simply an administrative change. It must align with committee expertise, oversight capacity, and overall plan governance strategy.

We work with plan sponsors to determine whether 3(38) delegation provides the appropriate balance of authority, accountability, and governance clarity.

What Delegating to a 3(38) Fiduciary Changes

Delegation reduces investment-related liability by transferring discretionary authority to a qualified fiduciary. That authority includes selecting, monitoring, and replacing plan investments within defined Investment Policy Statement parameters.

Delegation does not eliminate fiduciary responsibility. Plan sponsors must still prudently select and monitor the fiduciary, maintain governance processes, and ensure plan fees remain reasonable.

Risk reduction works only when paired with disciplined oversight and ongoing governance support.

Discretionary Investment Management

We assume responsibility for selecting, monitoring, and replacing plan investments in accordance with established Investment Policy Statement criteria.

Investment Policy Statement Alignment

We develop and maintain IPS documentation defining evaluation standards, performance thresholds, and replacement protocols.

Ongoing Investment Monitoring

We provide structured performance oversight and make timely adjustments when warranted.

Fee Benchmarking and Reasonableness Review

We evaluate investment and service provider costs to support fiduciary alignment and participant fairness.

Committee Reporting and Governance Support

We deliver structured reporting and documentation that support ongoing oversight responsibilities.