Cafaro Greenleaf Introduces Investment Fiduciary Solution

Boutique investment advisory and consulting firm Cafaro Greenleaf has launched ERISA 3(21) and 3(38) investment fiduciary services in response to strong demand.

The firm, which serves corporate, public and nonprofit retirement plans, says it developed the service in response to strong demand from advisers and retirement plan sponsors seeking expert advice on selecting and monitoring the investment options available to plan participants, while mitigating fiduciary liability for plan trustees.

Under Employee Retirement Income Security Act (ERISA) Sections 3(21) and 3(38), plan sponsors may delegate different levels of management of plan investment options to a qualified investment manager, an action that transfers some fiduciary responsibility and liability associated with selecting and monitoring plan investment options. Further, a 3(38) fiduciary may be only a bank, an insurance company or a registered investment adviser (RIA). Designated as a 3(38) fiduciary under its fiduciary blanket program, Cafaro Greenleaf provides protection to plans and trustees by acting as a full-discretion fiduciary under ERISA.

“Our singular focus on retirement plans makes us uniquely qualified to evaluate and implement investment solutions in defined contribution [DC] plans,” says Stephen Dopp, senior investment analyst at Cafaro Greenleaf. “The fiduciary blanket program is a way for plan fiduciaries and advisers to leverage our thought leadership and unique investment approach to enhance participant outcomes. We are excited to now launch this program on a national scale.”