PLANADVISER Weekend Newsdash
Week ending April 12th, 2019

Happy Friday, readers! This weekend’s mailing focuses on the ever-evolving topic of retirement plan regulations. For the casual observer, the shifting tangle of laws and regulations governing the behaviors of retirement plan fiduciaries can seem almost comically complex. For industry practitioners, wrestling with the regulatory Hydra is a daily battle, and one with potentially dire personal and professional consequences. Below you will find a roundup of significant regulatory events from the first quarter of 2019. We hope you’ll share some of what you read with a client or colleague.

Regulation News
Supreme Court Asked to Review Chevron Case for ERISA Pleading Standards
Specifically, the petition filed by participants in Chevron’s DC plan asks the Supreme Court to answer: “In pleading a breach of fiduciary duty under ERISA, is it sufficient for a plaintiff to allege a deficient decision-making process indirectly through inferences from the facts known to her?” Read more >
IRS Discusses Ways ESOPs Can Prevent Violation of Nonallocation Year Rules
Since there are no prescribed correction methods to address Internal Revenue Code Section 409(p) violations, prevention methods are important considerations for both employee stock ownership plan design and operation, the IRS says. Read more >
Plan Sponsors Affected by Severe Storms Get ERISA Compliance Relief
The Department says it recognizes that severe storms may impede efforts by plan fiduciaries in Nebraska, Iowa and Alabama to comply with the Employee Retirement Income Security Act over the next few months. Read more >
SEC No-Action Letter Offers Guidance for Processing Rollover Checks
Banc West Investment Services asked the Securities and Exchange Commission to clarify its stance on the potential conflict between FINRA suitability determinations called for by rollover decisions and, on the other hand, SEC demands to forward customer checks within a day of receipt. Read more >
House Subcommittee Witnesses Bash SEC’s Regulation Best Interest
Out of five witnesses called before the House Subcommittee on Investor Protection, Entrepreneurship and Capital markets, just one spoke favorably about the SEC’s conflict of interest regulations—and his support was conditioned on the SEC taking further action in this area. Read more >
Will Your Errors and Omissions Insurance Policy Keep You Dry?
Buyer Beware! One experienced matchmaker pairing RIAs with providers of E&O insurance policies likens the space to the Wild West, especially when one looks at the “non-admitted” provider marketplace. Read more >
MOST POPULAR STORIES
Three New ERISA Lawsuits Bash Actively Managed TDFs

Three new lawsuits question the offering of actively managed target-date funds to retirement plan participants.

$300 Million Plan Faces ERISA Fiduciary Breach Lawsuit

The plan being challenged in the latest fiduciary breach lawsuit held less than $300 million as of the start of last year, making it one of the smallest to become the target of an ERISA complaint.

Attorneys Offer Closer Reading of DOL’s Open MEP RFI

Advisers and broker/dealers hoping to work with open multiple employer plans now have a short window to offer their perspectives to the Department of Labor and the Internal Revenue Service.

Another Lawsuit Challenges Use of Untested CITs in 401(k) Plan

A similar lawsuit was filed in May against an investment manager and a different plan sponsor.

DOL Aims to Quickly Simplify Conflict of Interest Framework

The main theme of the new fiduciary rule proposal is alignment with other regulators—the SEC and FINRA in particular—but the agency is by no means surrendering its jurisdiction over tax-qualified retirement plans.

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