178k views
3 votes
Which of the following rules is not set forth in ERISA as general duties of fiduciary?

a. Federal Prudent Man Rule
b. Exclusive Purpose Rule
c. Diversification Rule
d. Uniform Principal and Income Rule

1 Answer

4 votes

Final answer:

The Federal Prudent Man Rule is not set forth in ERISA as a general duty of fiduciary, unlike the other rules mentioned.

So, the correct answer is option a.

Step-by-step explanation:

The General Duties of Fiduciary under ERISA (Employee Retirement Income Security Act) include several rules. However, the Federal Prudent Man Rule is not set forth in ERISA as one of the general duties of fiduciary. The Federal Prudent Man Rule is a common law principle used as a guideline for fiduciaries to exercise care, skill, and diligence in managing assets.

The other rules mentioned in the options are part of the general duties of fiduciary under ERISA. The Exclusive Purpose Rule requires fiduciaries to act solely in the interest of participants and beneficiaries, and for the exclusive purpose of providing benefits and defraying reasonable expenses.

The Diversification Rule requires fiduciaries to diversify plan investments to minimize risk, unless it is not in the best interest of participants. The Uniform Principal and Income Rule applies to trusts, and it specifies how a trustee should allocate principal and income to beneficiaries.

So, the correct answer is option a.

User Ccxvii
by
7.9k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.