Investment advisor is contacted by a participant for individual investment advice for the participant's personal asset portfolio

Any guidance will be appreciated w/re how a bank's RIA should respond when it is an investment manager to an ERISA plan and is asked at a participant's meeting (but asked privately) by a participant to review an individual's entire asset portfolio and provide financial advice and planning. The retirement account is, of course, a part of the individual's asset portfolio, but may also include brokerage accounts and non-IRA assets.

Can the investment advisor who provides training at the participant's meeting provide contact information to the individual and potentially take the person on as an individual client? 

If the investment advisor provides general contact information for the bank and is contacted by a participant in a plan to which the bank is a fiduciary for individual financial guidance, including the retirement assets, is that a conflict in interest? 

It seems as though that will be a conflict of interest.

Thank you!

You do not indicate whether the service agreement with the RIA authorizes the RIA to provide individual financial advice to a participant.  You also do not indicate whether the RIA is considered a fiduciary of the plan.  It is possible the RIA was acting within the terms of the service agreement or in the capacity of a fiduciary.

These should be bright line boundaries and if the RIA acts outside the scope of agreed-upon services or the RIAs assigned fiduciary duties, then the other plan fiduciaries should be informed and they should act accordingly.

On 5/15/2025 at 3:55 PM, Paul I said:

These should be bright line boundaries and if the RIA acts outside the scope of agreed-upon services or the RIAs assigned fiduciary duties, then the other plan fiduciaries should be informed and they should act accordingly.

Looks like this could become a hot issue as advisors seek to "turn participants into lasting clients".  What sorts of fiduciary and contractual issues does this raise? 

Upcoming NAPA webcast:  Grow Beyond the Plan: How to Convert Participants into Lifelong Clients

Lois, I attended the NAPA webcast and thought it very interesting. Thank you for sharing the link.