Why Fiduciary Wise Doesn’t Compete with TPAs or Advisors — We Strengthen Them
By Fiduciary Wise
An Independent ERISA 402(a) Named Fiduciary — Not a Competitor
When Fiduciary Wise joins a retirement plan, some service providers assume we are there to replace someone.
We’re not.
We do not serve as a TPA. We do not provide recordkeeping. We do not custody assets. We do not act as an investment advisor unless specifically engaged as a 3(38).
Our role is different — and intentionally so. We serve as an independent ERISA 402(a) named fiduciary, and in some cases provide 3(16) fiduciary services.
Because we are not competing with other service providers, we can monitor them objectively — which strengthens retirement plan governance and protects plan sponsors from unnecessary liability.
🎙 Featured Episode: The Wise Fiduciary – Season 3, Episode 7
This article expands on our recent Wise Fiduciary Podcast episode where we discuss how Fiduciary Wise works alongside TPAs, advisors, and recordkeepers — without competing with them.
In this episode, we walk through a real-world scenario illustrating how an independent ERISA 402(a) named fiduciary strengthens service provider relationships and protects plan sponsors under ERISA.
Prefer to watch on YouTube? Click here to view the episode directly.
Retirement Plans Require Specialization — Not Consolidation
There is a growing trend toward “one-stop shop” retirement plan service models. While convenient, consolidation of roles under ERISA can create structural conflicts.
When a firm provides services, sets its own fees, and monitors its own performance, self-monitoring replaces independent oversight.
Courts are increasingly scrutinizing these structures — particularly following Cunningham v. Cornell University, where the Supreme Court reinforced that hiring and paying a service provider is a prohibited transaction unless the proper exemption applies.
Independence is not just best practice. It is fiduciary risk management.
What an Independent Named Fiduciary Actually Does
As an independent ERISA 402(a) named fiduciary, Fiduciary Wise performs the overarching umbrella role in retirement plan oversight.
- Monitor TPAs, advisors, recordkeepers, and trustees
- Benchmark service provider fees
- Review contracts and prohibited transaction exemptions
- Oversee fiduciary documentation processes
- Escalate service issues when needed
- Ensure decisions are made solely in the interest of plan participants
We do not replace specialists. We coordinate and monitor them.
How We Strengthen TPAs and Advisors
When TPAs or advisors experience ownership transitions, service disruptions, benchmarking pressure, or escalation challenges, we help stabilize the plan.
We clarify fiduciary authority, facilitate productive conversations, align benchmarking data, and document a prudent oversight process.
For investment advisors operating under a 3(21) co-fiduciary structure, independent governance reduces co-fiduciary exposure by separating monitoring from advising.
Clear role delineation strengthens advisor-client relationships and protects the entire service ecosystem.
Why We Will Never Be a TPA or Recordkeeper
If we provided administrative, advisory, or recordkeeping services, we would be monitoring ourselves. That is a structural conflict.
Our independence allows us to question service levels objectively, benchmark fees without bias, and recommend changes when necessary — without financial interest in the outcome.
Our goal is not replacement. It is improvement.
The Cornell Decision and Modern ERISA Governance
The Cunningham v. Cornell University ruling reinforced that every service provider relationship must align with a valid prohibited transaction exemption under ERISA.
That means every fee arrangement must be prudently structured and properly documented.
Most employers do not have the internal ERISA depth to manage this independently. Delegating to an independent named fiduciary provides structure, documentation, and clarity.
Collaboration — Not Competition
We invite all service providers to committee meetings. We coordinate before meetings. We share benchmarking insights. We address concerns collaboratively.
Over time, structured oversight elevates service quality, strengthens reporting, and improves fee alignment.
Strong governance does not compete with specialists — it coordinates them.
Smooth Meetings Are Evidence of the Work
When committee meetings run smoothly, it can appear effortless.
But behind the scenes, we are reviewing contracts, monitoring fiduciary responsibilities, benchmarking fees, and tracking dozens of governance obligations annually.
Smooth meetings are not the absence of work — they are evidence of disciplined fiduciary oversight.
The Bottom Line
Fiduciary Wise does not compete with TPAs, advisors, or recordkeepers.
We create the governance framework that allows each specialist to excel — while protecting plan sponsors from escalating fiduciary liability.
Independent. Objective. Collaborative. Documented.
Schedule a Meeting
If you are a TPA, advisor, recordkeeper, or employer seeking stronger retirement plan governance, we welcome the conversation.
