Citi Racial Equity Program Payments Fall Outside Fiduciary Duty

A Citigroup Inc. racial equity program wouldn’t be subject to strict fiduciary standards based on the company’s selection of investment managers and payment of fees for “diverse managers” tied to its employee benefit plans, the US Labor Department said in its first retirement-related advisory opinion since 2020.

• Citi pays the fees as part of its “Action for Racial Equity Asset Manager Program,” established to advance “racial equity practices in the financial services industry,” the DOL’s Employee Benefits Security Administration said in the Sept. 29 opinion.
• EBSA also found in Citi’s favor on other ERISA compliance issues related to the administration ...