Opinion ID: 4389469
Heading Depth: 3
Heading Rank: 2

Heading: Control over compensation

Text: The district court also concluded Great-West is not a fiduciary as to setting its compensation. Although it acknowledged that a service provider’s control over compensation factors can give rise to fiduciary obligations, the court said this principle “has only been applied in cases where the alleged fiduciary has some form of direct 24 contractual authority to establish its fees and other administrative charges, or has authority to approve or disapprove the transactions from which it collects a fee.” Id. at 100. The court also reasoned that Great-West does not have control over its compensation because, even though it could use the Credited Rate to “influence its possible margins,” the ultimate amount it earns depends on whether participants elect to keep their money in the KGPF each quarter. Id. at 101.