1/21/2016. Department of Labor Update Presented By Dale R. Vlasek. January 21, 2016

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "1/21/2016. Department of Labor Update Presented By Dale R. Vlasek. January 21, 2016"

Transcription

1 1 Department of Labor Update Presented By Dale R. Vlasek January 21, I. Department of Labor (DOL) Proposed Regulation Defining Fiduciary Background ERISA defines fiduciary among other things as including a person who renders investment advice for a fee. ERISA Section 3(21)(A)(ii) ERISA Fiduciary Duties A fiduciary must exercise his or her duties with respect to the plan Solely in the interest of the participants and the beneficiaries; 3 For the exclusive purpose of providing benefits to such participants and beneficiaries in defraying the administrative costs; With the care, skill, prudence and diligence that the prudent man when acting in a like capacity and familiar with such matters would use; In accordance with the plan documents; and By maintaining additional ownership of plan assets within the jurisdiction of the courts. ERISA 404(a)(1), (b) 4 5 ERISA Fiduciary Duties Fiduciary self-dealing is a prohibited transaction under ERISA: As a result of this, a fiduciary may not do any of the following: Deal with the assets of the plan in his or her own interest; Engage in any transactions with parties who have interests that are adverse to the plan; or Receive any consideration from any party that is involved in a transaction with the plan assets. ERISA 406(b) New Proposed Fiduciary Rule Defines investment advice as including: Recommendations as to the advisability of Acquiring Holding Disposing or exchanging securities or other property 1

2 Holding Disposing or exchanging securities or other property Recommendations to take a distribution of benefits Recommendations as to the investment or management of securities or other property to be rolled over or otherwise distributed from a plan or IRA Appraisal or valuation of securities or property Recommendations of person who is also going to receive a fee or other compensation to do any of the things described above Fee or Compensation is defined as Any fee or compensation (direct or indirect) received for the investment advice from any source Or any fee or compensation incident to the transaction Includes brokerage fees, mutual funds and insurance sale commissions Exemptions Statements or recommendations made to a large plan investor with financial expertise by a counterparty acting in an arm s length transaction; Offers or recommendations to plan fiduciaries of ERISA plans to enter into a swap or security-based swap that is regulated under the Securities Exchange Act or the Commodity Exchange Act; Statements or recommendations provided to a plan fiduciary or an ERISA plan by an employee of the plan sponsor if the employee receives no fee beyond his or her normal compensation; Marketing or making available a platform of investment alternatives to be selected by a plan fiduciary for an ERISA participant-directed individual account plan; The identification of investment alternatives that meet objective criteria specified by a plan fiduciary of an ERISA plan or the provision of objective financial data to such fiduciary; The provision of an appraisal, fairness opinion or a statement of value to an ESOP regarding employer securities, to a collective investment vehicle holding plan assets, or to a plan for meeting reporting and disclosure requirements; and Information and materials that constitute investment education or retirement education. Best Interest Contract (BIC) Exemption To facilitate plan and IRA investment consulting, the DOL has proposed a Prohibited Transaction Exemption Proposed Prohibited Transaction Exemption would allow Advisors and their Financial Institutions to receive compensation from the purchase, sale or holding of an Asset by a plan or IRA Advisors are brokers, insurance agents or other individuals who are fiduciaries Financial institutions are Registered Investment Advisors, bankers, insurance companies, 2

3 Advisors are brokers, insurance agents or other individuals who are fiduciaries Financial institutions are Registered Investment Advisors, bankers, insurance companies, registered broker dealers Best Interest Contract (BIC) Exemption Assets are bank deposits, CDs, mutual funds, bank collective funds, insurance company separate accounts, exchange traded REITs, ETFs, corporate bonds, government debt securities, insurance and annuity contracts, GICs and exchange-traded securities Assets are NOT future call or put options, straddles or option contracts, non-publically traded securities or limited partnership interests Requirements of BIC Written contract between plan sponsor of less than 100 participants or IRA holder between advisor and financial institution Specifically includes the following: Acknowledgment of their fiduciary status Commitment to basic standards of impartial conduct, which generally incorporate an ERISA fiduciary standard of care for prudence and loyalty Warrants that the financial institution has adopted written policies and procedures designed to mitigate conflicts of interest and ensure adherence to standards of impartial conduct (which includes not authorizing compensation or incentive systems that would tend to encourage recommendations not in the best interest of the retirement investor) Requirements of BIC Disclosure of material conflicts of interest (e.g., whether offering proprietary products or receiving third party payments) and information about fees The contract may not include certain prohibited contract provisions, such as disclaimers or limitations of liability for violations of the contract, or a waiver of the retirement investor s right to participate in class action litigation (although agreement to binding arbitration with respect to individual contract claims would be permissible) Compensation Structure Financial institution must indicate it does not have a compensation program or structure that would encourage advisors not to act in best interest of plans or IRAs Disclosure BIC requires disclosure to the public and at point of sale Point of information Cost of acquisition Cost of maintaining Cost of selling Other costs Financial Institution Annual summary of costs Also information to DOL II. DOL Proposes Rules to Assist State-Sponsored Retirement Program Payroll deduction IRAs 3

4 II. DOL Proposes Rules to Assist State-Sponsored Retirement Program Payroll deduction IRAs DOL Safe Harbor Program to avoid ERISA coverage Under the proposed regulations a program created under state law and administered by the state which requires employers to offer a payroll deduction IRA program will not be subject to ERISA, provided, among other things: Participation by employees is voluntary Employers are responsible only for collecting employee contributions by payroll deduction and remitting them to the program The contributions are deposited into IRAs The normal IRA distribution restrictions and rules apply DOL Proposes Rules to Assist State-Sponsored Retirement Program The state is responsible for either investing the IRA deposits or selecting the investment options for the IRA The state is responsible for notifying employees of their rights under the program The state is responsible for enforcing employee s rights State-Sponsored Multiple Employer Plans (MEPs) The DOL has blessed the creation of state-sponsored multiple employer plans (MEPs). Under a state-sponsored MEP, various unrelated employers could adopt an ERISA-covered plan. The state or its designee would be responsible for running the plan as the plan administrator and would serve as the plan s fiduciary. The state or its designee would arrange for the administration of the plan, selecting the service providers, choosing investment options, providing services and paying benefits. There would only be a single Form 5500 filed regardless of the number of employees who chose to adopt the program. The overall effect of a state-sponsored MEP would be to take advantage of economies of scale to lower administrative and investment costs. III. DOL Plan Audit Issue DOL Plan audit activity has increased and DOL auditors are looking at the following: Fee disclosures Implementation in 2012 Purpose was to provide plan sponsors and plan participants with hard data about fees The next step is for the plan fiduciaries to act on that information DOL has begin asking to see the information when they audit plans Affordable Care Act Compliance Review of SPDs Review of notices provided to participants Insurance or self-insurance compliance with market reforms IV. DOL Urges Form 5500s for plans with 100 or more participants require an audit 4

5 Form 5500s for plans with 100 or more participants require an audit DOL found 40% of audits had problems DOL has initiatives to improve audits by improving auditors DOL has sent a letter to many plan sponsors highlighting the need for qualified CPAs to perform the audit The DOL instructed plan sponsors to consider the following: The number of plan audits the CPA firm conducts each year (including the type of plan audits) The extent of specific annual training the CPA firm received in auditing plans The status of the CPA s license with the state accounting board 20 DOL Urges Whether the CPA firm has been the subject of any prior DOL findings or referrals, or has been referred to a state accounting board or the American Institute of CPAs for investigation; or Whether the CPA firm s plan audit work has recently been subject to a peer review by another CPA firm and whether such review had negative findings 5

Key Points about DOL s Proposed Fiduciary Definition

Key Points about DOL s Proposed Fiduciary Definition REPRINTED FROM DC DIMENSIONS WINTER 2016 Key Points about DOL s Proposed Fiduciary Definition By Ian Kopelman, Chair, Employee Benefits and Executive Compensation Practice Group, and Joseph Hugg, Of Counsel,

More information

Executive Summary Definition of the Term Fiduciary U.S. Department of Labor Conflict of Interest Rule 1. April 15, 2016

Executive Summary Definition of the Term Fiduciary U.S. Department of Labor Conflict of Interest Rule 1. April 15, 2016 Executive Summary Definition of the Term Fiduciary U.S. Department of Labor Conflict of Interest Rule 1 April 15, 2016 I. Introduction. Background. The U.S. Department of Labor (the Department or DOL )

More information

Newly Proposed DOL Fiduciary Regulation:

Newly Proposed DOL Fiduciary Regulation: Newly Proposed DOL Fiduciary Regulation: A New Playing Field for Fiduciary Activity Stephen P. Wilkes, Esq. & Introduction Agenda for Today Background on Existing Rule Proposed Fiduciary Definition Carve-outs

More information

Sweeping New DOL Proposal on Fiduciary Investment Advice

Sweeping New DOL Proposal on Fiduciary Investment Advice Sweeping New DOL Proposal on Fiduciary Investment Advice Edward E. Bintz, Edward A. Frueh, and Douglas S. Pelley April 2015 The long-anticipated proposed fiduciary regulation was released by the Department

More information

DOL s Fiduciary Rule & Related Exemptions

DOL s Fiduciary Rule & Related Exemptions DOL s Fiduciary Rule & Related Exemptions Presentation to ACLI Forum 500 Leadership Retreat May 2, 2016 Thomas Roberts The Landscape Fiduciary Status Investment advice for a fee or discretionary authority

More information

Summary of DOL Regulatory Package Redefining Fiduciary Advice and Proposing or Amending Prohibited Transaction Class Exemptions

Summary of DOL Regulatory Package Redefining Fiduciary Advice and Proposing or Amending Prohibited Transaction Class Exemptions Summary of DOL Regulatory Package Redefining Fiduciary Advice and Proposing or Amending Prohibited Transaction Class Exemptions On April 20, the Department of Labor ( DOL ) proposed a package of regulations

More information

Employee Benefits & Investment Management Update

Employee Benefits & Investment Management Update Employee Benefits & Investment Management Update Department of Labor Revises Investment Advice Definition May 2015 On April 14, 2015, the Department of Labor (Department) released a long-awaited proposed

More information

Client Update DOL Catches Many in Expanded Fiduciary Net; Is Proposed Exemption an Escape Hatch or a Trap Door?

Client Update DOL Catches Many in Expanded Fiduciary Net; Is Proposed Exemption an Escape Hatch or a Trap Door? 1 Client Update DOL Catches Many in Expanded Fiduciary Net; Is Proposed Exemption an Escape Hatch or a Trap Door? NEW YORK Lawrence K. Cagney lkcagney@debevoise.com Jonathan F. Lewis jflewis@debevoise.com

More information

Comparison of the DOL s Proposed and Final Conflict of Interest or Fiduciary Rule and Best Interest Contract Exemption

Comparison of the DOL s Proposed and Final Conflict of Interest or Fiduciary Rule and Best Interest Contract Exemption Proposed Rule April 2015 Final Rule April 2016 I. Rule Governing Investment Advice Definition of Investment Advice Includes any of the following types of advice for a fee or other compensation: Includes

More information

DOL Proposes Rule Redefining Fiduciary Status in the Investment Advice Context

DOL Proposes Rule Redefining Fiduciary Status in the Investment Advice Context DOL Proposes Rule Redefining Fiduciary Status in the Investment Advice Context By Tess J. Ferrera and Christine A. Schleppegrell June 3, 2015 Background The Department of Labor (DOL) released its long-awaited

More information

DOL s Fiduciary Rule Increases Advisor Responsibility

DOL s Fiduciary Rule Increases Advisor Responsibility New Frontiers For Advisors Who Lead the Way First Quarter 2016 DOL s Fiduciary Rule Increases Advisor Responsibility Industry interest has increased around the Department of Labor s (DOL) rule expanding

More information

ALERT. DOL Issues Conflict of Interest Rule on Investment Advice: Fiduciary Net Will Widen on April 10, 2017. The Final Rule

ALERT. DOL Issues Conflict of Interest Rule on Investment Advice: Fiduciary Net Will Widen on April 10, 2017. The Final Rule ALERT Executive Compensation & Employee Benefits April 13, 2016 DOL Issues Conflict of Interest Rule on Investment Advice: Fiduciary Net Will Widen on April 10, 2017 A comprehensive new rule issued by

More information

NAIFA Fact Sheet: DOL Expands Fiduciary Definition

NAIFA Fact Sheet: DOL Expands Fiduciary Definition NAIFA Fact Sheet: DOL Expands Fiduciary Definition The Department of Labor (DOL) has released its long anticipated Proposed Regulation to Address Conflicts of Interest, and is accepting public comments

More information

Key Points IBDs, RIAs and Advisors Need to Know

Key Points IBDs, RIAs and Advisors Need to Know Review of the Department of Labor s (DOL) Final Definition of Fiduciary Key Points IBDs, RIAs and Advisors Need to Know Contents Three Key Points... 1 The Basic Framework of the Final Rule... 3 DOL s Final

More information

Best Interest Contract/PTE 84-24 Comparison

Best Interest Contract/PTE 84-24 Comparison Best Interest Contract/PTE 84-24 Comparison General Conditions Relief Provided Full BIC (IRAs) BIC for ERISA Plans BIC for Level Fee Fiduciaries PTE 84-24 Requires the following: 1. The transaction be

More information

Executive Summary Definition of the Term Fiduciary U.S. Department of Labor Conflict of Interest Rule 1. Updated April 15, 2015

Executive Summary Definition of the Term Fiduciary U.S. Department of Labor Conflict of Interest Rule 1. Updated April 15, 2015 I. Introduction. Executive Summary Definition of the Term Fiduciary U.S. Department of Labor Conflict of Interest Rule 1 Updated April 15, 2015 Background. The U.S. Department of Labor (the Department

More information

The US Department of Labor s Final Fiduciary Rule Incorporates Concessions to Financial Service Industry but Still Poses Key Challenges

The US Department of Labor s Final Fiduciary Rule Incorporates Concessions to Financial Service Industry but Still Poses Key Challenges CLIENT PUBLICATION COMPENSATION, GOVERNANCE & ERISA April 14, 2016 The US Department of Labor s Final Fiduciary Rule Incorporates Concessions to Financial Service Industry but Still Poses Key Challenges

More information

The Best Interest Contract Exemption

The Best Interest Contract Exemption COMPLIANCE & ETHICS FORUM FOR LIFE INSURERS The Best Interest Contract Exemption Practice Implications Beth J. Dickstein Robert P. Hardy Sidley Austin LLP Why is an Exemption Needed? The Prohibited Transactions

More information

Executive Compensation and Benefits Alert

Executive Compensation and Benefits Alert April 2015 Executive Compensation This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should

More information

401(k) Plans For Small Businesses

401(k) Plans For Small Businesses 401(k) Plans For Small Businesses Why 401(k) Plans? 401(k) plans can be a powerful tool in promoting financial security in retirement. They are a valuable option for businesses considering a retirement

More information

PROFIT SHARING PLANS. for Small Businesses

PROFIT SHARING PLANS. for Small Businesses PROFIT SHARING PLANS for Small Businesses 1 Profit Sharing Plans for Small Businesses is a joint project of the U.S. Department of Labor s Employee Benefits Security Administration (EBSA) and the Internal

More information

Understanding Your Fiduciary Role

Understanding Your Fiduciary Role Understanding Your Fiduciary Role Legal Aspects of Fiduciary Duties Under ERISA for Tax-Exempt Plan Sponsors Mark A. Daniele, Esq. McCarter & English, LLP January 26, 2012 I. ERISA ERISA imposes various

More information

Meeting Your Fiduciary Responsibilities

Meeting Your Fiduciary Responsibilities Meeting Your Fiduciary Responsibilities To view this and other EBSA publications, visit the agency s Web site at: www.dol.gov/ebsa. To order publications, contact us electronically at: www.askebsa.dol.gov.

More information

Legal Obligations of Employers for 401(k) Plans

Legal Obligations of Employers for 401(k) Plans Legal Obligations of Employers for 401(k) Plans 1. Background A. After extensive investigation of 401(k) retirement plans throughout the country, the Department of Labor (DOL) has determined the following:

More information

DOL Proposed Rule Expands Definition of Fiduciary Investment Advice

DOL Proposed Rule Expands Definition of Fiduciary Investment Advice COLUMN ERISA Litigation DOL Proposed Rule Expands Definition of Fiduciary Investment Advice On April 14, 2015, the Department of Labor (DOL), released its long-awaited re-proposed rule (the 2015 Proposed

More information

COMMENTARY. Once More Unto the Breach The New Fiduciary Definition. Background

COMMENTARY. Once More Unto the Breach The New Fiduciary Definition. Background APRIL 2015 COMMENTARY Once More Unto the Breach The New Fiduciary Definition On April 14, 2015, the Department of Labor (the Department ) re-proposed regulations (the Proposed Regulations ) that define

More information

Re: Definition of the Term Fiduciary; Conflict of Interest Rule Retirement Investment Advice (RIN 1210-AB32)

Re: Definition of the Term Fiduciary; Conflict of Interest Rule Retirement Investment Advice (RIN 1210-AB32) Office of Regulations and Interpretations Employee Benefits Security Administration Attn: Conflict of Interest Rule Room N-5655 U.S. Department of Labor 200 Constitution Avenue, NW Washington, DC 20210

More information

CLIENT ADVISORY AGREEMENT

CLIENT ADVISORY AGREEMENT CLIENT ADVISORY AGREEMENT This is an agreement between a California Registered Investment Advisor ( Advisor ) with its principal office at 13 B Hatton Avenue, Spreckels, California, and ( Client ). By

More information

A Basic Overview of the DOL Fiduciary Rule

A Basic Overview of the DOL Fiduciary Rule COMPLIANCE & ETHICS FORUM FOR LIFE INSURERS A Basic Overview of the DOL Fiduciary Rule CEFLI DOL Fiduciary Rule Summit Meeting May 10-11, 2016 Shifting Fiduciary Standards A Basic Overview of the DOL Fiduciary

More information

On April 14, 2015, the US Department of

On April 14, 2015, the US Department of The Investment Lawyer Covering Legal and Regulatory Issues of Asset Management VOL. 22, NO. 10 OCTOBER 2015 Department of Labor s Proposal to Define Investment Advice By David C. Kaleda On April 14, 2015,

More information

Meeting Your Fiduciary Responsibilities

Meeting Your Fiduciary Responsibilities The following information comes directly from a brochure prepared by The Department of Labor to help plan sponsors understand their fiduciary responsibilities. We are making this brochure available through

More information

NEW DOL FIDUCIARY GUIDANCE

NEW DOL FIDUCIARY GUIDANCE NEW DOL FIDUCIARY GUIDANCE TOP 10 PRACTICAL ACTION ITEMS FOR EMPLOYERS AND 401(K) INVESTMENT COMMITTEES ADAM B. CANTOR, ESQ. CHIESA SHAHINIAN & GIANTOMASI PC ONE BOLAND DRIVE, WEST ORANGE, NJ 07052 ACANTOR@CSGLAW.COM

More information

Why Advisors Will Benefit and Add Value Using a 3(38) Investment Fiduciary

Why Advisors Will Benefit and Add Value Using a 3(38) Investment Fiduciary Why Advisors Will Benefit and Add Value Using a 3(38) Investment Fiduciary Defining the roles between a 3(38) Investment Fiduciary and a Plan Advisor offering non fiduciary services. Protecting both the

More information

Client Update Final DOL Fiduciary Rules Simplify Some Mechanics, but Retain Core Principles... and Flaws

Client Update Final DOL Fiduciary Rules Simplify Some Mechanics, but Retain Core Principles... and Flaws 1 Client Update Final DOL Fiduciary Rules Simplify Some Mechanics, but Retain Core Principles... and Flaws NEW YORK Lawrence K. Cagney lkcagney@debevoise.com Jonathan F. Lewis jflewis@debevoise.com Lee

More information

American Bankers Association. Sample Glossary of Collective Investment Fund Terms for Disclosures to Retirement Plan Participants

American Bankers Association. Sample Glossary of Collective Investment Fund Terms for Disclosures to Retirement Plan Participants American Bankers Association Sample Glossary of Collective Investment Fund Terms for Disclosures to Retirement Plan Participants January 5, 2012 2 PART 1 Frequently Asked Questions (FAQs) About Collective

More information

Department of Labor Proposes Rule to Address Conflicts of Interest in Retirement Advice, Saving Middle-Class Families Billions of Dollars Every Year

Department of Labor Proposes Rule to Address Conflicts of Interest in Retirement Advice, Saving Middle-Class Families Billions of Dollars Every Year EMPLOYEE BENEFITS SECURITY ADMINISTRATION UNITED STATES DEPARTMENT OF LABOR FACTSHEET Department of Labor Proposes Rule to Address Conflicts of Interest in Retirement Advice, Saving Middle-Class Families

More information

New Regulations Under ERISA Refine and Develop Fiduciary Duties Regarding the Investment of Plan Assets

New Regulations Under ERISA Refine and Develop Fiduciary Duties Regarding the Investment of Plan Assets New Regulations Under ERISA Refine and Develop Fiduciary Duties Regarding the Investment of Plan Assets Maine Employee Benefits Council December 4, 2008 Eric D. Altholz Verrill Dana, LLP Background There

More information

Miller Financial Services, LLC Advisory Services Agreement

Miller Financial Services, LLC Advisory Services Agreement Miller Financial Services, LLC Advisory Services Agreement This Agreement (the Agreement ) is made and entered into, by and between, Miller Financial Services, LLC (the Advisor ) and xx (the Client ),

More information

Understanding Plan Fees and Expenses

Understanding Plan Fees and Expenses Understanding Plan Fees and Expenses Susan M. Wright, CPA, APM Executive Director, Consulting Topics of Discussion Fiduciary Responsibilities Settlor vs. Non-settlor Expenses Revenue Holding Accounts Questions

More information

PLAN MONITOR ERISA PLAN DOCUMENT FILE. Instruction Manual

PLAN MONITOR ERISA PLAN DOCUMENT FILE. Instruction Manual PLAN MONITOR ERISA PLAN DOCUMENT FILE Instruction Manual PLAN MONITOR ERISA PLAN DOCUMENT FILE According to the Employee Retirement Income Security Act (ERISA), employers who sponsor employee benefit plans

More information

Re: EBSA RIN 1210-AB32. Definition of the Term Fiduciary ; Conflict of Interest Rule-Retirement Investment Advice

Re: EBSA RIN 1210-AB32. Definition of the Term Fiduciary ; Conflict of Interest Rule-Retirement Investment Advice Via Electronic Submission to www.regulations.gov July 21, 2015 Office of Regulations and Interpretations Employee Benefits Security Administration Attn: Conflict of Interest Rule, Room N-5655 U.S. Department

More information

Your ERISA Attorney Isn t Going Anywhere Soon

Your ERISA Attorney Isn t Going Anywhere Soon Your ERISA Attorney Isn t Going Anywhere Soon PANELISTS: Jeremy P. Blumenfeld, Partner, Morgan Lewis & Bockius John E. Schadl, Principal and Head of ERISA and Fiduciary Services, Vanguard Marcia Wagner,

More information

Exercising Fiduciary Authority and Control Over the Investment Menu in 403(b) Plans Subject to ERISA

Exercising Fiduciary Authority and Control Over the Investment Menu in 403(b) Plans Subject to ERISA Reproduced with permission from Tax Management Compensation Planning Journal, 38 CPJ 299, 11/05/2010. Copyright 2010 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com Exercising

More information

Topics Covered. Two Ways To Be A Fiduciary 5/6/2015

Topics Covered. Two Ways To Be A Fiduciary 5/6/2015 ERISA Fiduciary Duty For Human Resources Professionals: Managing Risk and Implementing Cynthia A. Moore Jordan Schreier Dickinson Wright PLLC Topics Covered Who is a Fiduciary? What are Fiduciary Duties?

More information

INVESTMENT ADVISORY AGREEMENT

INVESTMENT ADVISORY AGREEMENT INVESTMENT ADVISORY AGREEMENT THIS INVESTMENT ADVISORY AGREEMENT is made on the Effective Date identified below by and between the investment advisors affiliated with BCG Securities, Inc. ( Advisor ),

More information

Mitigating fiduciary liability for defined contribution plan investment decisions

Mitigating fiduciary liability for defined contribution plan investment decisions Mitigating fiduciary liability for defined contribution plan investment decisions Vanguard commentary June 2013 Executive summary. In recent years, several high-profile class-action lawsuits have alleged

More information

Prudent Practices for Investment Stewards

Prudent Practices for Investment Stewards Step 1: Organize Prudent Practices for Investment Stewards Practice 1.1 - The Investment Steward demonstrates an awareness of fiduciary duties and responsibilities. 1.1.1 The Investment Steward complies

More information

There are several steps in the analysis of this issue.

There are several steps in the analysis of this issue. 1. The proposal, as written, would turn the promotion by an insurer of its own health, life and disability insurance products to a small business (or its broker/fiduciary) or employees (of any size employer)

More information

Melissa M. Wolf, CPA (570) 820.0186 Melissa.Wolf@ParenteBeard.com. Employee Benefit Plan Auditing and Regulatory Update 2012

Melissa M. Wolf, CPA (570) 820.0186 Melissa.Wolf@ParenteBeard.com. Employee Benefit Plan Auditing and Regulatory Update 2012 Melissa M. Wolf, CPA (570) 820.0186 Melissa.Wolf@ParenteBeard.com Employee Benefit Plan Auditing and Regulatory Update 2012 Agenda ASU 2010-06 SOC1 (Formerly SAS 70), SOC2 and SOC3 Department of Labor

More information

Understanding Retirement Plan Fees and Expenses

Understanding Retirement Plan Fees and Expenses Understanding Retirement Plan Fees and Expenses To view this and other EBSA publications, visit the agency s Web site at: www.dol.gov/ebsa. To order publications, contact us electronically at: www.askebsa.dol.gov.

More information

A NEW FIDUCIARY RULE FOR THE INVESTMENT ADVICE PLAYBOOK

A NEW FIDUCIARY RULE FOR THE INVESTMENT ADVICE PLAYBOOK PlanAdvisorTools.com A NEW FIDUCIARY RULE FOR THE INVESTMENT ADVICE PLAYBOOK How the DOL s Fiduciary Rule Has Fundamentally Changed Investment Advice for IRAs By Fred Reish - Partner, Drinker Biddle &

More information

Plan Administrator Guide

Plan Administrator Guide Plan Administrator Guide Your qualified retirement plan combines current employer tax savings with retirement security for participants. Congress specifically provided for this favorable treatment in the

More information

Department of Labor Fiduciary Advice Definition and Conflict of Interest Rule

Department of Labor Fiduciary Advice Definition and Conflict of Interest Rule CLIENT MEMORANDUM Department of Labor Fiduciary Advice Definition and Conflict of Interest Rule May 11, 2015 On April 14, 2015, the U.S. Department of Labor ( DOL ) released its long-awaited re-proposed

More information

Be a Prudent Fiduciary

Be a Prudent Fiduciary Be a Prudent Fiduciary How to Select, Monitor and Assure That Your Providers Properly Exercise their Responsibilities and Assume Appropriate ERISA and Contractual Liability John H. McKendry, Jr. WHO IS

More information

The New Fiduciary Regs: A Practical Review Part II

The New Fiduciary Regs: A Practical Review Part II This update is published by Ferenczy Benefits Law Center LLP to provide information about recent developments to our clients and friends. It is intended to be informational and does not constitute legal

More information

DOL Proposes a Re-Definition of the Term "Fiduciary"

DOL Proposes a Re-Definition of the Term Fiduciary DOL Proposes a Re-Definition of the Term "Fiduciary" November 2010 Date Aon Hewitt 2010 Aon Corporation Brief Description: The DOL recently proposed revising regulations to redefine the term fiduciary

More information

Fiduciary Risk Management for Plan Sponsors and Advisers

Fiduciary Risk Management for Plan Sponsors and Advisers june 2012 perspectives Fiduciary Risk Management for Plan Sponsors and Advisers The recent recession and market volatility have changed the playing field for investors and for the financial institutions

More information

DISCRETIONARY INVESTMENT ADVISORY AGREEMENT

DISCRETIONARY INVESTMENT ADVISORY AGREEMENT DISCRETIONARY INVESTMENT ADVISORY AGREEMENT This Discretionary Investment Advisory Agreement (this Agreement ) is between (the "Client") and LEONARD L. GOLDBERG d/b/a GOLDBERG CAPITAL MANAGEMENT, a sole

More information

INVESTMENT ADVISORY MANAGEMENT AGREEMENT

INVESTMENT ADVISORY MANAGEMENT AGREEMENT INVESTMENT ADVISORY MANAGEMENT AGREEMENT This Investment Advisory Agreement ( Agreement ) is entered into this day of, 20, by and between Rockbridge Asset Management, LLC ( Rockbridge ), a Registered Investment

More information

Vendor to Plan Fiduciary Investment and Fee/Compensation Disclosure

Vendor to Plan Fiduciary Investment and Fee/Compensation Disclosure ADP RETIREMENT SERVICES Vendor to Plan Fiduciary Investment and Fee/Compensation Disclosure HR. Payroll. Benefits. Vendor to Plan Fiduciary Investment and Fee/Compensation Disclosure New vendor to plan

More information

On April 6, 2016, the Department of

On April 6, 2016, the Department of The Investment Lawyer Covering Legal and Regulatory Issues of Asset Management VOL. 23, NO. 7 JULY 2016 Department of Labor s Final Investment Advice Regulation and Its Impact on the Retail Investor Marketplace

More information

Fiduciary Insurance Understanding Your Exposure. All programs Administered by Lockton Affinity, LLC

Fiduciary Insurance Understanding Your Exposure. All programs Administered by Lockton Affinity, LLC Fiduciary Insurance Understanding Your Exposure All programs Administered by Lockton Affinity, LLC First Party vs. Third Party ERISA Plan First Party Named plan fiduciaries or anyone acting in the capacity

More information

The Basics of Fiduciary Responsibility under ERISA

The Basics of Fiduciary Responsibility under ERISA The Basics of Fiduciary Responsibility under ERISA Prepared by Elizabeth A. LaCombe, Esq. I Who Is A Fiduciary Under the Employee Retirement Income Security Act of 1974 (ERISA)? Any person or entity who:

More information

SELF-DIRECTED INDIVIDUAL 401K ACCOUNT HOLDER DISCLOSURE AND HOLD HARMLESS

SELF-DIRECTED INDIVIDUAL 401K ACCOUNT HOLDER DISCLOSURE AND HOLD HARMLESS SELF-DIRECTED INDIVIDUAL 401K ACCOUNT HOLDER DISCLOSURE AND HOLD HARMLESS P.O. BO 30007 ALBUQUERQUE, NEW MEICO 87190 P: 888-205-6036 F: 505-288-3905 OPERATIONS@HORIZONTRUST.COM Important! This form contains

More information

ERISA AND THE RESPONSIBILITIES OF A PLAN SPONSOR: THE NEED FOR AN EXPERIENCED INTERMEDIARY

ERISA AND THE RESPONSIBILITIES OF A PLAN SPONSOR: THE NEED FOR AN EXPERIENCED INTERMEDIARY ERISA AND THE RESPONSIBILITIES OF A PLAN SPONSOR: THE NEED FOR AN EXPERIENCED INTERMEDIARY The following addresses the potential benefits of retaining a financial intermediary for retirement plans, specifically

More information

EACUBO 2011 Pittsburgh Workshop

EACUBO 2011 Pittsburgh Workshop EACUBO 2011 Pittsburgh Workshop ERISA Fiduciary Responsibilities for 403(b) Plans: Keys to Implementation June 17, 2011 Presented by: Ed Wodarczyk, Esq. Rhoades & Wodarczyk, LLC 330 Grant Street; Suite

More information

FOR PLAN SPONSOR USE ONLY.

FOR PLAN SPONSOR USE ONLY. Plan v. Settlor Expenses under ERISA and Non-ERISA Defined Benefit and Defined Contribution Plans ERISA and Department of Labor Guidance Relating to Plan Expenses (and Comparable Internal Revenue Code

More information

Conflicts of Interest

Conflicts of Interest Comptroller s Handbook AM-CI Asset Management (AM) Conflicts of Interest January 2015 Office of the Comptroller of the Currency Washington, DC 20219 Contents Introduction...1 Overview... 1 Types of Conflicts

More information

THE WAGNER LAW GROUP A PROFESSIONAL CORPORATION DEFAULT INVESTMENTS AND INVESTMENT ADVICE UNDER PPA

THE WAGNER LAW GROUP A PROFESSIONAL CORPORATION DEFAULT INVESTMENTS AND INVESTMENT ADVICE UNDER PPA DEFAULT INVESTMENTS AND INVESTMENT ADVICE UNDER PPA I. Default Investments. Fiduciary Relief. Plan sponsors are not responsible for the specific investment decisions made by participants if the plan complies

More information

Understanding the Structure and Risk in a Co-Fiduciary Advisor Relationship

Understanding the Structure and Risk in a Co-Fiduciary Advisor Relationship Understanding the Structure and Risk in a Co-Fiduciary Advisor Relationship A White Paper by Chris Rowey and Darren Stewart Benefit Funding Services Group 2040 Main Street, Suite 150 Irvine, CA 92614 Introduction

More information

FIDUCIARY LIABILITY INSURANCE, BONDING, AND SERVICE AGREEMENTS FOR SPONSORS

FIDUCIARY LIABILITY INSURANCE, BONDING, AND SERVICE AGREEMENTS FOR SPONSORS FIDUCIARY LIABILITY INSURANCE, BONDING, AND SERVICE AGREEMENTS FOR SPONSORS 2007 by: Marcia S. Wagner, Esq. The Wagner Law Group A Professional Corporation 99 Summer Street, 13 th Floor Boston, MA 02110

More information

The Proposed Best Interest Contract Exemption: Part 2

The Proposed Best Interest Contract Exemption: Part 2 Portfolio Media. Inc. 860 Broadway, 6th Floor New York, NY 10003 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com The Proposed Best Interest Contract Exemption: Part

More information

The Benefits of Mandatory Distributions

The Benefits of Mandatory Distributions The Benefits of Mandatory Distributions A WHITE PAPER BY FRED REISH AND BRUCE ASHTON C. Frederick Reish (310) 203-4047 Fred.Reish@dbr.com www.drinkerbiddle.com/freish Bruce L. Ashton (310) 203-4048 Bruce.Ashton@dbr.com

More information

For Institutional Use Only Not for Use with Retail Investors RETIREMENT FIDUCIARY FOCUS

For Institutional Use Only Not for Use with Retail Investors RETIREMENT FIDUCIARY FOCUS AN ADVISOR S GUIDE TO UNDERSTANDING FIDUCIARY RESPONSIBILITIES IN A 401(k) PLAN For Institutional Use Only Not for Use with Retail Investors RETIREMENT FIDUCIARY FOCUS TABLE OF CONTENTS 1 Introduction

More information

Glossary of Qualified

Glossary of Qualified Glossary of Qualified Retirement Plan Terms 401(k) Plan: A qualified profit sharing or stock bonus plan under which plan participants have an option to put money into the plan or receive the same amount

More information

Discretionary Trustee Services

Discretionary Trustee Services Discretionary Trustee Services An Overview for Plan Sponsors With the ever-changing rules governing retirement plan many plan sponsors are looking for ways to reduce their liability and risk. Busey Wealth

More information

SAMPLE INSURANCE BROKER SERVICE AGREEMENT

SAMPLE INSURANCE BROKER SERVICE AGREEMENT SAMPLE INSURANCE BROKER SERVICE AGREEMENT (For Use By Insurance Brokers in Preparing Service Agreements for Clients Whose 401(k) Plans Are Funded by John Hancock Group Annuity Contracts or, With Respect

More information

INVESTMENT ADVISORY AGREEMENT

INVESTMENT ADVISORY AGREEMENT INVESTMENT ADVISORY AGREEMENT Equity Planning Group, Inc. 7035 Orchard Lake Road, Suite 700 West Bloomfield, Ml 48322 (248) 932-4600 - Fax (248) 932-4610 Equity Planning Group, Inc. Registered Investment

More information

Models of Advisor Fiduciary Responsibility: What Advisors Need to Know

Models of Advisor Fiduciary Responsibility: What Advisors Need to Know Models of Advisor Fiduciary Responsibility: What Advisors Need to Know Ashish Shrestha Regional Director This information is provided for registered investment advisors and institutional investors and

More information

RETIREMENT PLAN FIDUCIARY GUIDE

RETIREMENT PLAN FIDUCIARY GUIDE RETIREMENT PLAN FIDUCIARY GUIDE CONGRATULATIONS You re sponsoring a valuable retirement plan for your employees, and BB&T is delighted to assist you in that effort. Employees will appreciate this important

More information

RETIREMENT INSIGHTS. Understanding your fiduciary role. A plan sponsor fiduciary guide

RETIREMENT INSIGHTS. Understanding your fiduciary role. A plan sponsor fiduciary guide RETIREMENT INSIGHTS Understanding your fiduciary role A plan sponsor fiduciary guide ABOUT Perhaps no one topic in the employee benefits arena has drawn more attention and scrutiny over the last several

More information

AUTOMATIC ENROLLMENT 401(k) PLANS. for Small Businesses

AUTOMATIC ENROLLMENT 401(k) PLANS. for Small Businesses AUTOMATIC ENROLLMENT 401(k) PLANS for Small Businesses Automatic Enrollment 401(k) Plans for Small Businesses is a joint project of the U.S. Department of Labor s Employee Benefits Security Administration

More information

Service Provider Fee Disclosure Rules Now Final: Next Steps for Retirement Plan Fiduciaries. March 2012

Service Provider Fee Disclosure Rules Now Final: Next Steps for Retirement Plan Fiduciaries. March 2012 Service Provider Fee Disclosure Rules Now Final: Next Steps for Retirement Plan Fiduciaries March 2012 Table of Contents Service Provider Fee Disclosure Final Rules 2 Background 2 Significant Clarifications

More information

Summit Wealth Group, Inc. d/b/a Summit Wealth Management

Summit Wealth Group, Inc. d/b/a Summit Wealth Management d/b/a Summit Wealth Management Form ADV Part 2A Appendix 1 Wrap Fee Program Brochure Effective: March 6, 2015 This Wrap Fee Brochure provides information about the qualifications and business practices

More information

Best Practices for Plan Committees: Fiduciary Training. Objective. Sheldon H. Smith Bryan Cave LLP Denver, Colorado

Best Practices for Plan Committees: Fiduciary Training. Objective. Sheldon H. Smith Bryan Cave LLP Denver, Colorado Best Practices for Plan Committees: Fiduciary Training Sheldon H. Smith Bryan Cave LLP Denver, Colorado Objective Identify and understand certain best practices that should be paramount in administering

More information

Managing Your Future

Managing Your Future Managing Your Future A Guide to Managing Your Firm s Retirement Plan Alex Hargrave Senior Vice President RBC Dain Rauscher (415) 445-8400 alex.hargrave@rbcdain.com Mike Lucey Managing Partner Gordon &

More information

Retirement Plan RFPs. John H. McKendry, Jr. & Heidi A. Lyon. Warner Norcross & Judd LLP 2011

Retirement Plan RFPs. John H. McKendry, Jr. & Heidi A. Lyon. Warner Norcross & Judd LLP 2011 Retirement Plan RFPs John H. McKendry, Jr. & Heidi A. Lyon Warner Norcross & Judd LLP 2011 OVERVIEW Legal Background Methods for Selecting Providers RFP Process 22 Steps and Considerations Provider Models

More information

SAMPLE REGISTERED INVESTMENT ADVISER COMPENSATION DISCLOSURE

SAMPLE REGISTERED INVESTMENT ADVISER COMPENSATION DISCLOSURE SAMPLE REGISTERED INVESTMENT ADVISER COMPENSATION DISCLOSURE (For Use by Registered Investment Advisers in Providing Disclosures of Compensation To Retirement Plan Clients Whose Plans are Funded by Group

More information

Understanding fiduciary responsibilities

Understanding fiduciary responsibilities INSIGHTS SERIES Perspectives and viewpoints on investing in today s market Understanding fiduciary responsibilities A guide for retirement plan sponsors Offering a retirement savings opportunity in the

More information

WHAT IT MEANS TO BE AN INVESTMENT FIDUCIARY

WHAT IT MEANS TO BE AN INVESTMENT FIDUCIARY WHAT IT MEANS TO BE AN INVESTMENT FIDUCIARY Two Buckhead Plaza, Suite 600 3050 Peachtree Road NW Atlanta, GA 30305 2013 A division of Raymond James & Associates, Inc., member New York Stock Exchange/ SIPC

More information

FIDUCIARY BEST PRACTICES:

FIDUCIARY BEST PRACTICES: FIDUCIARY BEST PRACTICES: Taking a prudent approach to plan management A White Paper Prepared by Transamerica Retirement Solutions Contents Taking a prudent approach to plan management 2 Appointment of

More information

FIDUCIARY UNDERSTANDING YOUR RESPONSIBILITIES UNDER A GROUP HEALTH PLAN. Health Insurance Cooperative Agency www.hicinsur.com 913.649.

FIDUCIARY UNDERSTANDING YOUR RESPONSIBILITIES UNDER A GROUP HEALTH PLAN. Health Insurance Cooperative Agency www.hicinsur.com 913.649. UNDERSTANDING YOUR FIDUCIARY RESPONSIBILITIES UNDER A GROUP HEALTH PLAN Health Insurance Cooperative Agency www.hicinsur.com 913.649.5500 1 Content Introduction The essential elements of a group health

More information

Investment policy statement sample

Investment policy statement sample Investment policy statement sample FOR PLAN SPONSOR USE ONLY This sample investment policy statement is provided for informational purposes only. It is not intended to provide authoritative guidance or

More information

ABA WEALTH MANAGEMENT AND TRUST

ABA WEALTH MANAGEMENT AND TRUST ABA WEALTH MANAGEMENT AND TRUST A $10.00 shipping, recordkeeping and administrative fee will be added to all self-paced enrollments. Course Name Tuition Trust Fundamentals Introduction to Estate Planning

More information

CLS ADVISOR IQ SERIES A PRIMER ON ERISA FIDUCIARY STANDARDS AND TYPES

CLS ADVISOR IQ SERIES A PRIMER ON ERISA FIDUCIARY STANDARDS AND TYPES CLS ADVISOR IQ SERIES A PRIMER ON ERISA FIDUCIARY STANDARDS AND TYPES Table of Contents Introduction General Fiduciary Standards Under Securities Law ERISA Fiduciary Standards Types of ERISA Fiduciaries

More information

401(k) Fiduciary Briefing

401(k) Fiduciary Briefing 401(k) Fiduciary Briefing 7 Steps to Help Plan Sponsors Mitigate Risk Presented by: John A. Frisch, CPA/PFS, CFP, AIF, PPC TM President, & Managing Partner, Qualified Plans Common 401(k) Plan Objectives

More information

Understanding Fiduciary Responsibility in 401(k) Plans

Understanding Fiduciary Responsibility in 401(k) Plans RESOURCE EDGE TM Understanding Fiduciary Responsibility in 401(k) Plans A Guide for Financial Professionals INVESTMENT INSIGHTS PRACTICE BUILDING SOLUTIONS RETIREMENT RESOURCES The following information

More information

Comments regarding ZRIN: 1210 ZA25 and RIN: 1210-AB32

Comments regarding ZRIN: 1210 ZA25 and RIN: 1210-AB32 July 17, 2015 By Email and Courier Office of Exemption Determinations Employee Benefits Security Administration Attention: D 11712 U.S. Department of Labor 122 C Street, NW Suite 400 Washington DC 20001

More information

Obtaining Quality Employee Benefit Plan Audit Services: The Request for Proposal and Auditor Evaluation Process

Obtaining Quality Employee Benefit Plan Audit Services: The Request for Proposal and Auditor Evaluation Process Obtaining Quality Employee Benefit Plan Audit Services: The Request for Proposal and Auditor Evaluation Process The AICPA Employee Benefit Plan Audit Quality Center has prepared this document to assist

More information

REPRESENTATIVE TOPIC TYPES OF RETIREMENT SAVINGS ARRANGEMENTS RETIREMENT PLAN REGULATORY & INDUSTRY UPDATES. Audience

REPRESENTATIVE TOPIC TYPES OF RETIREMENT SAVINGS ARRANGEMENTS RETIREMENT PLAN REGULATORY & INDUSTRY UPDATES. Audience The following list of topics represents the range and depth of subject matter that may be addressed in Integrated Retirement training and content. Training and content can be delivered in a variety of

More information