News & Analysis as of

Investment Adviser Fiduciary Duty 401k

Robinson Bradshaw

Lower Pleading Standard for 401(k) Plan Prohibited Transaction Suits

Robinson Bradshaw on

In its April 17 decision in Cunningham v. Cornell University, the U.S. Supreme Court established a plaintiff-friendly standard for ERISA prohibited transaction claims, resolving a circuit court split. As a result, plan...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Advisors aren’t sold on Bitcoin

On whether to recommend Bitcoin and other digital assets for clients, financial advisers are wary about their fiduciary duty to clients, according to a CoinShares survey....more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

When Your 401(k) Financial Advisor May Have To Be Fired

401(k) financial advisors are often handicapped by the fact that the nature of their position requires them to have an ERISA background when they don’t. It’s hard to fake an ERISA background when you don’t and it’s pretty...more

Faegre Drinker Biddle & Reath LLP

Things I Worry About (7): DOL Investigations and Unsuspecting Plan Sponsors

The DOL’s EBSA has a number of programs that can restore benefits to plans and participants. Those include: - Civil investigations. - Criminal investigations. - Informal compliant resolutions. - Correction programs. ...more

Proskauer - Employee Benefits & Executive...

401(k) Plan Fiduciaries Breached ERISA’s Duty of Loyalty By Allowing ESG Interests To Influence Management Of The Plan

Last week, Judge Reed O’Connor of the U.S. District Court for the Northern District of Texas, issued the first-of-its-kind ruling on the merits pertaining to environmental, social, and corporate governance (“ESG”) investing...more

Carlton Fields

Changes for Producer Award Trips at IMOs? Fiduciary Rule Suggests Turbulence Ahead

Carlton Fields on

In April 2024, the U.S. Department of Labor issued its long-awaited retirement security rule, also known as the fiduciary rule, broadening the definition of who is an “investment advice fiduciary” under the Employee...more

ArentFox Schiff

ESG Update: Two Court Decisions Highlight the Importance of the “G” in “ESG”

ArentFox Schiff on

ESG stands for “environmental, social, and governance.” Though often overlooked, two recent cases — Spence v. American Airlines and Exxon v. Arjuna Capital, LLC — focus on G’s place in the ESG initialism. Here, we break...more

Proskauer - Employee Benefits & Executive...

Ninth Circuit: Changes to a Services Agreement Require Consideration of Indirect Compensation

A recent Ninth Circuit decision has generated considerable controversy amongst employee benefits practitioners by holding that plan fiduciaries engaged in prohibited transactions when they amended the plan’s existing...more

Kilpatrick

DOL's Interpretation of Fiduciary Rollover Advice Narrowed by District Court

Kilpatrick on

This week, a federal district court in the Middle District of Florida invalidated the Department of Labor’s ("DOL") policy as to when advice provided by a financial institution or financial professional on a rollover from an...more

Kilpatrick

Federal District Court Narrows Interpretation of Fiduciary Rollover Advice

Kilpatrick on

On February 13, 2023, a federal district court in the Middle District of Florida invalidated the Department of Labor’s (“DOL”) policy as to when advice provided by a financial institution or financial professional (“adviser”)...more

Littler

DOL Issues Final Rule for ERISA Fiduciaries Considering Socially Conscious Investments

Littler on

Employers offering 401(k) and similar retirement plans should familiarize themselves with a new rule published by the Employee Benefits Security Administration of the U.S. Department of Labor, Prudence and Loyalty in...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

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Advisors Advantage - November 2022

Unfiltered 401(k) Views On What Is Going On Now - For years, dating back to college and law school, I had an unfiltered view of things. I have strong opinions and the opinions are based on my experiences. The problem,...more

McDermott Will & Schulte

When Are Cryptocurrencies Appropriate Investments for Retirement Plans and IRAs? DOL Cautions 401(k) Plan Fiduciaries to Exercise...

Cryptocurrencies and digital assets—such as bitcoin, ether and non-fungible tokens (NFTs)—have become some of the hottest investment products in recent years. The growing interest has inevitably led to retirement plan...more

Faegre Drinker Biddle & Reath LLP

SLOW Your Roll: DOL Temporarily Halts Enforcement of Compliance with PTE and ERISA Fiduciary Obligations for Rollover Advice

Benjamin Franklin once said “don’t put off until tomorrow what you can do today.” While that is always prudent advice, the Department of Labor (DOL) believes it’s best to grant an extension to investment advisors and...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

The Rosenbaum Law Firm Review - August 2021

You Have To Deal With Some Unpleasant Facts About Your 401(k) Plan. The greatest benefit you can provide as an employer is a qualified retirement plan, such as a 401(k) plan. The problem is that most employers treat a...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Retirement Plan Advisors Advantage - July 2021

As Retirement Plan Provider, Think Differently - It’s odd, but I do get some great ideas from professional wrestling in my business approach as an ERISA attorney/retirement plan provider. Like in pro wrestling, becoming a...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Hire an advisor when you get an employee

I’m still amazed when I find participant-directed 401(k) plans without a financial advisor. While I understand how solo 401(k) plans don’t have an advisor because individuals think they can do it on their own, it makes no...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Best defense is good procedures and following them

Having a great 401(k) plan doesn’t mean that a former participant won’t sue you or the government won’t audit you. The reason is that you have no control over what other people may do....more

Faegre Drinker Biddle & Reath LLP

Best Interest Standard of Care for Advisors #41

The Department of Labor’s Prohibited Transaction Exemption and Its Impact on Recommendations to Plans, Participants and IRAs (Part 6) - On February 16, 2021, the DOL’s prohibited transaction exemption (PTE) 2020-02 became...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

The Rosenbaum Law Firm Review - February 2021

The Problems and Perils In Changing Your 401(k) TPA - I hate moving and I’ve only had to do it a handful of times in my life. I’ve always said that moving can be a traumatic experience. Packing away items over time isn’t...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Retirement Plan Advisors Advantage - December 2020

Big Concepts That 401(k) Plan Providers Forget About. Whether it was working for others or working for charitable organizations, it seems that there is a culture out there that seems to forget why these businesses and...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Don’t let grudges get in the way of doing right

I always joke that I get rid of old grudges to make way for new ones. Recently, an advisor asked about a well-known third-party administrator (TPA) for a plan that I serve as a fiduciary. This TPA has a very good reputation...more

McDermott Will & Schulte

DOL: Path for 401(k) Plans to Offer Private Equity Investment Options

The US Department of Labor (DOL) issued an information letter in June 2020 indicating that, in limited circumstances, it will allow defined contribution retirement plans (such as 401(k) plans) to indirectly invest in private...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

No one will be happy with the Fiduciary Rule

I used to joke that no matter what I did, I could never make my parents happy. The same can be said with any attempt to change the fiduciary rule....more

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