One of the fundamental duties of a fiduciary is to control and account for a client's investment fees and expenses. This particular responsibility has become the focus of most of the regulatory changes now under consideration in Washington, and also has been the primary cause of participant lawsuits against larger 401(k) plans.

Many people think a fiduciary must select the lowest-cost service provider or lowest-priced basket of goods and services. Not so. Instead, a fiduciary must be able to demonstrate the thought process behind a choice. A fiduciary must be able to show what the costs are for, how the costs compare to other options, who has been compensated from the client's account and whether that compensation was fair and reasonable.

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