Clarifying Fiduciary Responsibility for Principal-Record-Kept Plans

Principal serves as a 401(k) recordkeeper and retirement plan platform. While Principal provides administrative and recordkeeping services, fiduciary responsibility remains with the plan sponsor and any named fiduciaries, unless duties are formally delegated.

A Principal 401(k) fiduciary oversight review is designed for plan sponsors and fiduciaries who want clarity around roles, processes, and documentation, and who want to reduce fiduciary risk without disrupting the plan or changing platforms.

This service may be appropriate if you:

  • Are you a named fiduciary on a Principal-record-kept plan
  • Serve on a retirement plan committee
  • Are unsure which parties are acting in a fiduciary capacity
  • Want to strengthen the fiduciary process and defensibility

Understanding Fiduciary Responsibility on the Principal Platform

Principal provides recordkeeping and investment options. However:

  • The plan sponsor retains fiduciary responsibility unless duties are properly delegated
  • Investment oversight and fee monitoring remain fiduciary functions
  • Documentation and ongoing review are essential to defensibility

 

Most fiduciary issues arise from unclear roles or informal processes, not intentional wrongdoing.

What This Review Covers

This engagement evaluates fiduciary oversight within a Principal-record-kept plan, including:

  • Identification of named fiduciaries and delegated roles
  • Review of service agreements and fiduciary scope
  • Evaluation of investment oversight and monitoring processes
  • Assessment of fee monitoring and benchmarking practices
  • Review of committee governance and documentation

The objective is fiduciary clarity and risk reduction.

Our Fiduciary Approach

Holland Capital Management operates under a fiduciary standard. This means:

  • Guidance is provided in the best interest of the plan and its participants, consistent with our fiduciary obligations
  • Compensation is transparent
  • No proprietary platforms or recordkeeping incentives
  • Process and documentation come before any recommendation

Our role is to help fiduciaries understand and strengthen their oversight framework.

Who This Is Typically For

Principal fiduciary oversight reviews are commonly used by:

  • Business owners sponsoring Principal-based plans
  • Retirement plan committee members
  • Executives with fiduciary responsibility
  • Organizations seeking to improve governance and reduce risk

You do not need to change recordkeepers or advisors to engage this service.

What the Process Looks Like

  • Introductory conversation to understand fiduciary structure
  • Review of plan documents, agreements, and disclosures
  • Evaluation of fiduciary roles, oversight processes, and gaps
  • Discussion outlining observations and potential improvements

There is no obligation to implement any recommendation.

How This Fits Into Broader Plan Oversight

Strong fiduciary governance helps:

  • Reduce personal and organizational risk
  • Improve plan defensibility
  • Support consistent decision-making
  • Align responsibilities with regulatory expectations

In many cases, improvements can be made within Principal, without changing platforms or disrupting the plan.

Can Holland Capital Management Help You Achieve Your Goals?  Schedule a complimentary, no-obligation second opinion. 

 

Let’s Talk 

Locations Where Principal 401(k) Fiduciary Oversight Is Offered

Holland Capital Management provides Principal 401(k) fiduciary oversight reviews to clients in the following cities and regions:

Principal 401k Fiduciary Risk

Principal 401k Fiduciary Risk for Medical Practices

Getting Started

If you oversee a Principal-record-kept 401(k) plan and want clarity around fiduciary responsibility, the first step is a brief conversation to determine whether this review is appropriate.