News & Analysis as of

Fiduciary Investment

Ogletree, Deakins, Nash, Smoak & Stewart,...

DOL Plans to Replace ESG Rule for Retirement Plan Fiduciaries

The U.S. Department of Labor (DOL) indicated in court documents that it intends to begin new rulemaking to replace a previous rule that permitted 401(k) plan fiduciaries to consider environmental, social, and governance (ESG)...more

Charles E. Rounds, Jr. - Suffolk University...

Individual Trustee Delegates to Financial Institution the Job of Taking Custody and Keeping Track of Income and Principal: The...

While PC software programs are a practical improvement over the trustee’s hard-copy ledger book, when it comes to keeping track of trust income and principal these programs still require serious clerical monitoring on the...more

Hall Benefits Law

Fifth Circuit Appears Skeptical of Invalidating ESG Rule Despite the Fall of Chevron

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A U.S. Court of Appeals for the Fifth Circuit panel appeared skeptical during oral arguments in which conservative states and Texas-based energy interests sought to reverse a district judge’s order upholding an environmental,...more

McAfee & Taft

Gavel to Gavel: Fiduciary committees offer shield against welfare plan litigation

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Investment and administrative committees for employer-sponsored retirement plans have long been the gold standard for a company to carry out its fiduciary obligations to plan participants as required by the Employee...more

Proskauer - Employee Benefits & Executive...

The Never-Ending Fiduciary Rule Story Continues: Effective Date of DOL’s Newest Fiduciary Investment Advice Rule Delayed by...

The Department of Labor (“DOL”) recently issued final rules (the “Final Rules”) which expanded what it means to provide fiduciary “investment advice” under ERISA and Section 4975 of the Code (discussed here). The Final Rules...more

Lippes Mathias LLP

Understanding the Role of an Estate Representative and Choosing the Right Individual for your Estate Plan

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Once you have taken the essential step in formulating your estate plan, you must name an executor of your Will. Whom should you designate for this significant role, and what is expected of them?...more

Davis Wright Tremaine LLP

Excessive Fees or Incessant Litigation – Time for Legislative and Employer Action on Retirement Plans!

Commonly referred to as "excessive fee" litigation, class actions that allege retirement plan investments charge too much and earn too little have increased over the past two decades. Excessive fee cases are difficult to...more

ArentFox Schiff

Biden Administration Issues Final Rule Expanding ERISA Fiduciary Definition, Enhancing Protections for Pension Plan Participants

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On April 23, the US Department of Labor (DOL) released a final rule significantly expanding the definition of who qualifies as a fiduciary under the Employee Retirement Income Security Act (ERISA) (the Retirement Security...more

Proskauer - Employee Benefits & Executive...

Fifth Circuit Reverses Dismissal of 401(k) Fees Claims

The Fifth Circuit recently reversed a district court’s dismissal of claims that the fiduciaries of a 401(k) plan breached the duty of prudence under ERISA by offering participants retail share classes instead of cheaper...more

Cadwalader, Wickersham & Taft LLP

DOL Issues Final Rule Regarding Fiduciary Investment Advice

On Tuesday, April 23, 2024, the U.S. Department of Labor (the “DOL”) released its new final rule (the “Final Rule”) regarding when a person becomes a “fiduciary” by virtue of providing investment advice for purposes of the...more

Pillsbury Winthrop Shaw Pittman LLP

DOL Expands Investment Advice Subject to Fiduciary Liability

Following previous failed attempts to expand the fiduciary liability of financial services providers, the DOL released a new rule that broadens the definition of “fiduciary” under ERISA. The new rule is expected to face...more

Lowenstein Sandler LLP

U.S. Department of Labor Finalizes Changes to the QPAM Exemption

On April 3, 2024, the U.S. Department of Labor (DOL) released its final amendment to Prohibited Transaction Class Exemption 84-14, known as the Qualified Professional Asset Manager (QPAM) exemption. The QPAM exemption is...more

The Wagner Law Group

Pension Risk Transfers and the Continuing Concern About Buying a Pig in a Poke

The Wagner Law Group on

Pension risk transfers (“PRTs”) continue to make the news. And well they should. Last year alone, over $100 billion in liabilities were transferred from defined benefit pension plans to insurance companies. And the trend...more

Seward & Kissel LLP

DOL Proposes to Expand the Definition of an ERISA Fiduciary

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On November 3, 2023, the U.S. Department of Labor (DOL) proposed a collection of regulatory changes in its ongoing quest to update the definition of a “fiduciary” under ERISA and Section 4975 of the Internal Revenue Code (the...more

Cadwalader, Wickersham & Taft LLP

DOL Issues New Proposed Fiduciary Rule

On Tuesday, October 31, 2023, the U.S. Department of Labor (the "DOL") issued a new proposed rule pertaining to the definition of “fiduciary” under ERISA and Section 4975 of the Code. If adopted, the proposed rule would...more

Proskauer - Employee Benefits & Executive...

TRICK-or-TREAT? DOL Proposes Spooky New “Retirement Security Rule” That Would Expand the Scope of Fiduciary “Investment Advice”

Responding to the “terrifying” reality that conflicted investment advice is costing retirement savers billions of dollars each year, on October 31, 2023, the Department of Labor (“DOL”) issued proposed rules representing its...more

Mintz

Biden Administration's DOL Rule Enabling Investment Advisors to Consider ESG Factors Survives Judicial Challenge

Mintz on

On September 21, 2023, Judge Kacsmaryk (N.D. Texas), a famously conservative Trump-appointed jurist, upheld a Department of Labor rule promulgated by the Biden Administration that enables employee retirement plans to consider...more

Faegre Drinker Biddle & Reath LLP

The Best Interest Standard for Recommending Account Types

Under Regulation Best Interest (Reg BI), the SEC imposes a best interest standard on account recommendations by broker-dealers. This is because recommending an account type is viewed by the SEC as recommending an investment...more

Williams Mullen

PODCAST: Williams Mullen's Benefits Companion - Exploring the Value of Qualified Default Investment Alternatives

Williams Mullen on

On this episode of Williams Mullen's Benefits Companion, host Brydon DeWitt is joined by Ken Barnes, senior investment consultant at SageView Advisory Group, who discusses the benefits of Qualified Default Investment...more

Seward & Kissel LLP

SEC Staff Issue Risk Alert on LIBOR-Transition Preparedness for Investment Advisers and Investment Companies

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Who may be interested: Registered Investment Companies, Registered Investment Advisers - Quick Take: The staff of the SEC’s Division of Examinations (Staff) recently issued a risk alert (Alert) addressing the status of...more

Kilpatrick

Legal Alert | DOL Opens ESG Door: What Does It Mean for Plan Fiduciaries?

Kilpatrick on

Department of Labor (“DOL”) Secretary Walsh recently announced final regulations in a blog post titled “Removing Barriers to Considering ESG Factors in Retirement Plan Investments.” While the rules open the door to more...more

Foley Hoag LLP

DOL Eases Restrictions on Use of ESG Factors in Retirement Plan Investment Decisions

Foley Hoag LLP on

The U.S. Department of Labor (“DOL”) has issued a final rule (the “Final Rule) addressing how ERISA fiduciaries may consider environmental, social and governmental (ESG) factors in making investment decisions for retirement...more

Bradley Arant Boult Cummings LLP

Five Takeaways from the DOL’s Final Rule on Selecting Retirement Plan Investments

The Department of Labor (DOL) issued a final rule that explicitly allows—but does not require—retirement plan fiduciaries to take climate change and other environmental, social, and governance (ESG) considerations into...more

Proskauer - Employee Benefits & Executive...

Two More District Courts Reject ERISA Fee and Performance Claims as Insufficient

Two recent district court decisions add to the growing number of courts granting motions to dismiss putative ERISA class actions challenging defined contribution plan fees and investment performance. These decisions from the...more

Faegre Drinker Biddle & Reath LLP

What Broker-Dealers Need to Know About Correcting PTE 2020-02 Mistakes

The DOL expanded its interpretation of fiduciary advice in the Preamble to PTE 2020-02 and as a result, many more broker-dealers and their registered representatives (investment professionals) are fiduciaries for their...more

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