Department of Labor Guidance on Fiduciary Responsibilities in Recommending Service Providers

This document is an information letter from the U.S. Department of Labor's Pension and Welfare Benefits Administration providing guidance on the application of ERISA's fiduciary responsibility provisions to a proposal to transmit a letter to money managers of pension plans encouraging them to consider using a minority-controlled securities firm for execution services. The letter discusses the fiduciary duties of prudence and loyalty under ERISA, as well as the prohibited transaction restrictions, that would apply to such a recommendation.