More stringent regulation in the 401(k) industry has made it a risky business to be in for financial advisors. Plan participants sue advisors for bad advice, high fees and plummeting retirement assets.
That's why financial professionals should consider purchasing ERISA fiduciary insurance, said David Levine, a principal with the Groom Law Group.
There are many ways an advisor can get drawn into litigation, including selection of investment funds that go bad, selection of vendors where ongoing operational problems occur and fee disclosure errors, he said.
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