How Best Practices Become Standards

When methods for performing complex processes get refined in their effectiveness to a point that they can be applied uniformly to multiple businesses or institutions, such methods become "best practices." When best practices gain sufficient application that they become a normal way to do things, they become a standard.

Organizations such as the American National Standards Institute, or ANSI, oversee the creation, promulgation and use of thousands of norms and standards that directly impact businesses in nearly every sector. The pension plan industry is in the throes of seeing standards emerge for the conduct of "investment fiduciaries" from best practices that are growing in usage across a wide spectrum of retirement plan sponsors.

The Investment Fiduciary Leadership Council ("IFLC") embraces the concept of standards for investment fiduciaries and organizations that provide support services to them. IFLC currently endorses best practices developed by the Foundation for Fiduciary Studies. IFLC also endorses best practices developed by the American Society of Pension Professionals & Actuaries for recordkeepers that serve retirement plans.

IFLC is hopeful that best practices for fiduciaries and their service providers will emerge within a reasonable timeframe. Retirement plan participants have already learned recently the painful truth that in times of financial chaos where standards are lacking, investors suffer!

IFLC Contact:
Deanna Bond - Member Services