My reading of the PPA 408 investment advice guidelines lead me to believe that the fiduciary advisor must always be a third-party and could not be an employee of the plan sponsor (see 408(g)(4); the fiduciary advisor must be selected by a plan fiduciary that has no affiliation with the fiduciary advisor).

For example, if a bank has a 401(k) plan, the bank could not use one of its internal investment advisors (its "wealth management vp") as the fiduciary advisor...is that right? It just seems odd that a bank, insurance company, brokerage house etc., could not use one of its own employees as the fiduciary advisor. Is there another statutory exemption I'm missing?

Thanks,

RT