I wanted to share with you the article on the lawsuit against Walgreens that essentially stems from lack of performance monitoring of investments over multiple years. This article was interesting on many fronts and made me think about how the Trustee Fiduciary responsibility is a serious one. When best practices are not followed this brings the trustees personal liability into play and their personal assets are exposed. It also shows that over multiple years of “missed out compounding growth” amongst multiple participants, the damages can be very severe.
Our Fiduciary Audit at Smith Brothers Financial covers best practices and our services involve advising trustees and monitoring the overall responsibilities to help reduce and mitigate the chances and/or severity of loss. Best practices, alongside an appropriate risk transfer insurance policy can do what’s right for participants while protecting trustees.