If you don’t, maybe you should. Many people mistakenly assume that when they hire a 3(38) they no longer have to worry about any fiduciary responsibility. They are wrong. While they wouldn’t necessarily be held responsible for the day-to-day decisions made by the 3(38), over time, if they are not doing a good job, you can be held liable.
So what are your options as a sponsor? You have to be familiar enough with the IPS (investment policy statement) to know whether or not they are doing what they said they would in the contract. Many plan sponsors need the help of a 3(21) adviser to monitor their 3(38) adviser, since they lack the expertise to be able to do it prudently themselves.
If legal problems should arise in the future and the plan sponsor has not monitored the work of the 3(38) in relation to the contract, they will have given up the protection that they had hoped to achieve by hiring the 3(38) in the first place.
