Why You Should Have an Investment Policy Statement

Failing to adopt an investment policy statement (IPS) is not a violation of the fiduciary standards of ERISA. However, the Department of Labor (DOL) has said that the adoption of an IPS is “consistent with the fiduciary obligations set forth in ERISA,” therefore appearing to encourage fiduciaries with investment responsibility to adopt an IPS. See DOL Interpretive Bulletin 2016-01. This article by Eric Altholz of Verrill Dana LLP explains why.

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