Question

When reviewing the appointment of investment managers as described in Section 3(38) of ERISA, which of the following would NOT be a consideration?

a. The plan names an investment manager or authorizes a named fiduciary to appoint an investment manager.
b. The investment manager is a bank, or an insurance company that is qualified to do business in more than one state.
c. The investment manager acknowledges in writing that it is a fiduciary with respect to the plan.
d. The investment manager is on the approved list established by the bank's board of directors.

Answer 1

The investment manager being on an approved list by the bank's board of directors is not a requirement for their appointment as described in Section 3(38) of ERISA.

Step-by-step explanation:

When reviewing the appointment of investment managers as described in Section 3(38) of ERISA, which would NOT be a consideration, the correct answer is that the investment manager being on the approved list established by the bank's board of directors is not a requirement. What matters according to ERISA is that the investment manager is named or has the authority to be appointed by a named fiduciary, is a qualified bank or insurance company, and acknowledges in writing their fiduciary status with respect to the pension plan.