Investment ConsultantsFiduciary Services
First Mercantile recognizes the high importance of fulfilling
fiduciary responsibilities in today's financial marketplace. That's why
we make available our Fiduciary MasterPlannerTM services to help our
clients document and maintain quality compliance records. Our Fiduciary
MasterPlanner services assist our clients with understanding and
complying with their roles as plan fiduciaries.
First Mercantile's Fiduciary MasterPlanner services
consist of:
The Advisor Review
Committee
The Advisor Review Committee (ARC) acts in a fiduciary capacity
as trustee of the funds on the First Mercantile platform. The role of the ARC is
to provide a broad range of funds to meet the unique requirements of plan
participants. The ARC oversees a stringent selection and monitoring process to
ensure that each independent money manager and mutual fund merits inclusion on our
platform. The ARC develops an investment policy statement for each manager to
serve as a guideline in monitoring performance on an ongoing basis and to
determine when and if replacement is necessary. The ARC makes the plan
sponsor's job easier by performing this ongoing due diligence.
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Web-based tools
Plan sponsors and participants
have a plethora of web-based tools that assist them in being compliant with
Department of Labor (DOL) and ERISA regulations. First Mercantile has several options
that assist plan sponsors with efficiency when performing fiduciary
obligations. The e-Deposit feature allows plan sponsors to submit contributions
in a timely and efficient manner electronically. Our
e-Distribution feature
allows plan sponsors to submit a distribution request in a paperless format and our
pre-populated forms are updated to meet current regulations. The e-Reports feature allows
plan sponsors to have select reports sent to specific
email accounts on a regular basis. These reports help them monitor crucial
information regarding the operation of the plan and then file the reports in
their due diligence file. The automatic rebalance feature allows participants to
stay in line with the asset allocation model the participant and investment
consultant selected.
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Deposit Watchdog
The financial press has released several stories about the DOL's interest in
investigating employers who make late deposits. First Mercantile offers an
enhancement that assists plan sponsors in complying with DOL rules regarding the
deposit of salary deferrals, loan payments and other amounts withheld from
employee paychecks. First Mercantile will notify the plan sponsor of such
deposits that have not been received within 10 calendar days following each
specific payroll date. This feature in conjunction with e-Deposit will take you
and your company to the next level of fiduciary compliance.
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Investment Policy Statement Guide
According to the Center for Fiduciary Studies, an investment policy statement is
the most important document to include in a plan sponsor's due diligence file.
First Mercantile makes available to investment consultants a sample investment
policy statement and guide. This document, which details the core investment
needs as well as criteria for selecting and monitoring plan investments,
demonstrates the prudence of the plan's investment decision process. A detailed
investment policy statement will assist the plan sponsor with a clear plan for
building a meaningful retirement strategy for participants.
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Trusteeship
At the request of the plan sponsor, First
Mercantile will act as a directed trustee for the retirement plan. In this
capacity, First Mercantile is subject to the investment decision instructions of another person (fiduciary) or entity (investment
committee) that has discretionary authority. The duties to which First Mercantile
is subject as directed trustee are detailed within the trust document and
may include: administering the trusts in the interest of the participants,
protecting trust property against theft or loss, maintaining all recordkeeping
duties and ensuring retirement assets are not being used in a manner considered
to be a prohibited transaction under ERISA or the IRC. This is another way that
First Mercantile acts as a partner in the mutual fiduciary endeavor.
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Online retirement financial
planning tools
Plan participants can receive help with their retirement
savings and investment decisions by using our educational tools and calculators.
First Mercantile helps participants determine if they are saving enough to
achieve the level of wealth needed at retirement. This information will
enable them to effectively plan for the future. By allowing the participant
additional control over his retirement planning, you are potentially
alleviating your fiduciary liability as it relates to a participant's investment
strategy choice.
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Fiduciary
Compliance Blueprint
First Mercantile has aligned with
ERISA Compliance
Associates, LLC (San Diego, CA) to offer a proactive analysis of
company retirement plan(s) that ensures the appropriate processes and procedures
are in place to fulfill fiduciary obligations, and most importantly, that these
procedures are being executed. This annual analysis assists you in building a
complete strategy to manage your fiduciary risk while maximizing your
participants? wealth.
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§404(c)
assistance
First Mercantile assists plan sponsors with §404(c) compliance.
Participant communication is a plan sponsor's primary responsibility if
the plan sponsor intends for the plan to be §404(c) compliant. Plan sponsors should be proactive in
communicating as much as possible to plan participants regarding investment
options and diversification, strategic planning for retirement and expenses
charged to the plan. We provide participants with a user-friendly web site
containing educational information about the plan and its investment options.
The plan sponsor has access to additional reports and expense disclosures
through www.plnsponsor.com
and in the Plan Application to share with participants
upon their request.
For a comprehensive web demonstration, please contact the First
Mercantile Sales Department.
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