DOL Investment Guidance

I recently had another Investment professional mention to me they are using Index funds because of DOL guidance that any deviation from Index funds should be documented in terms of reasons why you are not using Index funds. Has anyone seen any guidance like this?  I cannot find any guidance except for ESG guidance.  Is there any specific investment guidance from the DOL regarding which funds should be used?

TIA

Has this other professional provided a cite to such DOL guidance?

Last I saw (and I have no cite) the DOL specifically did not weigh in on the battle between passive and active investments - except to indicate that the fees charged for active management need to be evaluated in light of the potential return (presumably in excess of index funds).

Bottom line - it's a "fiduciary function" and that means have a prudent process.  If so, the DOL shouldn't second guess the decision.

4 hours ago, david rigby said:

Has this other professional provided a cite to such DOL guidance?

Nope - was going to reach out and ask.

20 hours ago, MjInvestments said:

I recently had another Investment professional mention to me they are using Index funds because of DOL guidance that any deviation from Index funds should be documented in terms of reasons why you are not using Index funds. Has anyone seen any guidance like this?  I cannot find any guidance except for ESG guidance.  Is there any specific investment guidance from the DOL regarding which funds should be used?

TIA

"Gee, that's interesting. What is your citation for that information".  You will find that when you ask that question, you will NOT get an answer because there is not any such opinion from DOL and, moreover, DOL will specifically NOT get involved in such a discussion.