Types of Advisors
Condor Capital is capable of acting as your 401(k)’s co-fiduciary investment consultant (under ERISA code 3(21)) or as your 401(k)’s fiduciary investment manager (under ERISA code 3(38)).
For more information on the similarities and differences among advisors and their duties to your 401(k) plan, please look at the chart below.
| My Advisor…. | Non-Fiduciary | Co-Fiduciary ERISA 3 (21)* | Investment Advisor ERISA 3 (38) | Benefits to Plan Sponsor |
|---|---|---|---|---|
| has a fiduciary duty | No | Maybe | Yes | Determines Responsability/Liability |
| states their fiduciary status in writing | No | Maybe | Yes | Reduced Significant Risk |
| liable for selecting plan options | No | Depends | Yes | Reduced Liability |
| liable for monitoring plan options | No | Depends | Yes | Reduced Liability |
| liable for determining mapping strategies | No | Depends | Yes | Reduced Liability |
| receives transferred risk from plan sponsor | No | Maybe | Yes | Reduced Significant Risk |
| evaluates risk tolerance | No | Maybe | Yes | Reduced Plan Investment Risk |
| provides fee transparency | No | Maybe | Yes | Reduced Plan Investment Cost |
| provides advice with accountability | No | Maybe | Yes | Receives Advice |
* If a co-fiduciary assumes fiduciary responsibility by a provision in writing, plan sponsors can mitigate their liability by ensuring that the consultant/advisor shares in that liability.
