When are directed trustee services applicable?

Directed trustee services are specifically applicable when the trustee acts solely based on the instructions provided by the plan sponsor. In this arrangement, the trustee does not have the discretion to make investment decisions or determine the investment strategy independently; instead, they are responsible for executing the directions given to them.

This model is commonly used in retirement plans where the plan sponsor desires to maintain control over the investment options and strategy. The trustee's role is to ensure that the instructions are carried out accurately and in compliance with applicable laws and regulations. This structure allows for a clear delineation of responsibilities, which can be beneficial for both the plan sponsor and the trustee.

The other options describe scenarios that do not align with the concept of directed trustee services. For example, when a trustee has discretionary powers, they are not limited to acting only on the instructions of the sponsor. Similarly, if a trustee manages investment decisions independently or if there are multiple trustees making collective decisions, this indicates a different governance structure than what's defined for directed trustee services.