ERISA Fiduciary Definition

HR Policy Association believes that the definition of fiduciary should be drafted in such a narrow manner as to protect ERISA plan participants while minimizing unintended consequences such as increased plan costs.  HR Policy does believe that the process of updating the fiduciary definition does provide an opportunity to address the insufficient oversight governing proxy advisory firms.  If proxy advisory firms were to be treated as fiduciaries under an updated fiduciary definition, the proxy advisory business would change dramatically eliminating the current culture of conflicts of interest and ensuring a heightened responsibility that reports provided to institutional investors, including ERISA plans, were accurate.