3(38) Investment Fiduciary Services
You're responsible for your company's 401(k) plan, but managing investments isn't your expertise. PointOak Retirement Advisors acts as your 3(38) investment fiduciary, assuming full discretionary authority over plan investments so you can focus on running your business.
Named fiduciary status from day one
90%+ revenue from retirement plan services
Proprietary 10-point investment scoring system
Why Choose Us for 3(38) Investment Fiduciary Services?
ERISA excessive fee litigation surged 35% in 2024, with the average settlement reaching $4.6 million. As plan fiduciaries, many plan sponsors face overwhelming fiduciary risk without the investment expertise to protect themselves. PointOak has been advising plan sponsors and participants since day one, acting as registered investment advisors under the Employee Retirement Income Security Act with full 3(38) named fiduciary status on every engagement.
What sets us apart is our specialization. We generate over 90% of our revenue from corporate retirement plans, not general wealth management. Our investment methodology evaluates over $120 billion in retirement plan assets quarterly using a proprietary 10-point pass/fail scoring system. As your 3(38) investment manager, we handle all investment decisions on your behalf. We document everything in your Virtual 401(k) Fiduciary File to protect you if the DOL comes calling.
Our 3(38) Investment Manager Services
3(38) Investment Manager Services
As your 3(38) investment fiduciary, we accept full discretionary authority to select, monitor, and replace plan investments on your behalf. This transfers investment fiduciary responsibility from your committee to us under ERISA Section 3(38). Only registered investment advisors, banks, and insurance companies can serve in this fiduciary role under federal or state law. We make fund changes immediately when investment performance fails our criteria. No waiting for committee approval.
Investment Policy Statement Development
We draft your Investment Policy Statement to document investment objectives, risk tolerance, and decision-making criteria. This IPS serves as your fiduciary roadmap and demonstrates prudent process during DOL audits or ERISA litigation. The Employee Retirement Income Security Act requires plan fiduciaries to follow plan documents and act in the best interest of plan participants. Your IPS aligns with participant demographics and plan design.
Quarterly Investment Monitoring
Our investment committee reviews your plan's fund lineup every quarter using institutional measurement techniques. We evaluate investment performance, expense ratios, style drift, and manager tenure against our proprietary 10-point scoring system. This ongoing due diligence ensures your investment portfolio meets ERISA requirements. Funds that fail our criteria get replaced automatically.
Investment Committee Services
We establish or refine your Investment Committee structure and governance framework. Our financial advisors attend your committee meetings as named fiduciaries, providing direct investment advice and guiding strategic discussions. Committee meetings shift from reviewing individual fund performance to focusing on participant outcomes, retirement readiness, and plan design optimization. Many business owners report significant relief from no longer making complex investment decisions without proper investment expertise.
Common Investment Fiduciary Challenges Nationwide
| Challenge | What It Looks Like | How We Help |
|---|---|---|
| ERISA Litigation Exposure | Excessive fee lawsuits increased 35% in 2024, with average settlements of $4.6 million. Even well-run plans get targeted by plaintiff firms pursuing fiduciary breach claims. | We assume full discretionary authority as your 3(38) fiduciary, transferring investment liability to us under federal law. Our fiduciary services include complete defense of investment decisions. |
| Investment Decision Complexity | 40,000+ available investment options make selection overwhelming. Most committee members lack investment expertise to evaluate performance, expense ratios, and style drift properly. | Our proprietary 10-point scoring system evaluates $120+ billion quarterly. We handle all investment due diligence using institutional measurement techniques our investment professionals apply systematically. |
| Time Burden on Executives | Managing plan investments equals a part-time job. Committee meetings consume travel costs, billable hours, and executive focus. Business owners need to run their companies, not manage investment portfolios. | Clients reduce committee size from eight to two and switch from quarterly to semiannual meetings, cutting costs significantly while improving plan decisions. |
| DOL Audit Anxiety | 67% of DOL investigations result in monetary penalties or corrective action. Most sponsors lack proper documentation showing they followed correct procedures and fiduciary process requirements. | We maintain your Virtual 401(k) Fiduciary File with complete documentation of every investment decision and quarterly review, demonstrating compliance with ERISA requirements. |
| Fear of Personal Liability | Plan fiduciaries face personal fiduciary liability for breaches. Many executives don't realize they're fiduciaries until receiving lawsuit notice, despite ERISA defining broad fiduciary roles. | Our 3(38) named fiduciary status transfers investment fiduciary responsibility to us, a registered investment advisor under federal law acting solely in participants' best interest. |
What To Expect: Our Process
Initial Consultation and Fiduciary Assessment
Call or schedule online. We confirm your appointment within two business hours and conduct your fiduciary assessment, reviewing current fiduciary roles and responsibilities.
Investment Analysis and Proposal
We analyze your current investment lineup using our 10-point scoring system. You receive a comprehensive proposal documenting our investment management services approach and fiduciary structure.
3(38) Fiduciary Appointment
We execute the 3(38) investment manager agreement, establishing our named fiduciary status in writing per ERISA requirements. This transfers investment fiduciary responsibility from your committee.
Ongoing Quarterly Monitoring
Your plan investments receive quarterly reviews. We make necessary fund changes immediately and provide comprehensive documentation for your fiduciary file.
About PointOak Retirement Advisors
PointOak Retirement Advisors is an independent retirement plan consulting firm headquartered in McLean, Virginia, serving plan sponsors nationwide. The firm generates over 90% of its revenue from corporate retirement plans and acts as a 3(21) or 3(38) named fiduciary under ERISA with every client. PointOak evaluates over $120 billion in retirement plan assets quarterly.
Frequently Asked Questions
Investment advisory services fees typically run 0.15% to 0.40% of plan assets annually, depending on plan size and complexity. Larger plans often negotiate lower basis point fees. We provide transparent, itemized pricing with no hidden charges. Many clients find the fiduciary liability protection and time savings justify the investment, especially considering average ERISA litigation settlements exceed $4 million.
Three things set us apart: we generate over 90% of revenue from retirement plans (true specialists, not financial advisors who treat retirement plans as side business), we're independently owned with no proprietary products to push, and our investment methodology evaluates over $120 billion in plan assets quarterly. We've been registered as named fiduciaries since day one.
The transition typically takes 2-4 weeks. We execute a new investment manager agreement establishing our 3(38) status, then assume discretionary authority over your existing investment options. We analyze current plan investments immediately using our due diligence process and make necessary fund changes. Most sponsors report the process is straightforward and the relief from fiduciary responsibility is immediate.
A 3(21) investment adviser can provide investment advice and recommendations, but you retain final decision-making authority and fiduciary liability. A 3(38) investment manager has full discretionary authority to select, monitor, and replace plan investments without your approval. The 3(38) assumes investment fiduciary responsibility under the Employee Retirement Income Security Act.
You transfer investment fiduciary liability to a registered investment advisor who acts on your behalf. Committee meetings shift from reviewing individual funds to focusing on participant outcomes and helping employees achieve comfortable retirement. Many sponsors reduce meeting frequency and committee size significantly, lowering costs. Research shows relief from worry and fiduciary risk is the primary motivator for business owners.
No. You remain responsible for selecting and monitoring your 3(38) investment manager with the same fiduciary duty of prudence. You must demonstrate a prudent process for choosing us and periodically review our investment performance. However, you're no longer liable for specific investment decisions like fund selection or replacement. The 3(38) assumes that fiduciary responsibility under federal law.
Investment advisory services offered through PointOak Retirement Advisors, LLC. This site is published for residents of the United States only. PointOak Retirement Advisors, LLC does not provide tax or legal advice.
Ready to Simplify Your Financial Life?
Schedule a complimentary consultation to discuss your financial goals and how we can help. There's no cost for the initial meeting. No obligation. Just a conversation to see if we're the right fit for your needs.
What To Expect
Our initial consultation typically lasts 30–45 minutes. We'll discuss your goals, current situation, and how we might work together. Come prepared with questions.