ERISA Revenue Sharing Arrangements: Addressing Possible Plan Assets Status, Pursuing Due Diligence

Utilization of Excess Payments, Contract Negotiations, Allocation of Credits to Plan Participants and More

Recording of a 75-minute CLE webinar with Q&A


Conducted on Tuesday, July 30, 2019

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will address a number of fiduciary and other issues that may be relevant to ERISA counsel in connection with the review and provide ERISA counsel with the tools necessary to guide fiduciary clients in revenue sharing arrangements. Our experienced panel will address issues surrounding the utilization of excess payments, contract negotiation, credit allocation to plan participants and more.

Description

Financial institutions that provide services to a plan receive payments such as 12b-1 fees and administrative services fees, often referred to as revenue sharing payments. In light of recent high profile, multi-million dollar settlements involving these agreements, plan sponsors and fiduciaries may need to ramp up scrutiny during drafting and implementation.

Counsel to ERISA fiduciaries must also ensure that arrangements do not include clauses that would inadvertently cause the payments to be ERISA plan assets under DOL  guidance. If these payments are considered plan assets, any person authorized to manage them would be an ERISA fiduciary.

Additionally, whether or not revenue sharing payments are considered plan assets, fiduciaries should engage in appropriate due diligence to avoid prohibited transaction rules and in appropriate cases qualify for the exemption under section 408(b)(2) of ERISA.

Listen as our authoritative panel reviews appropriate terms and enforcement of revenue sharing agreements, applicable due diligence in avoiding prohibited transaction rules and best practices in dealing with excess payments.

READ MORE

Outline

  1. Revenue sharing arrangements and plan asset status
  2. Fiduciary due diligence requirements
  3. Best practices
    1. Revenue sharing contractual terms
    2. Calculation of revenue sharing payments
    3. Reporting requirements
    4. ERISA account tracking
    5. Utilization of excess revenue sharing payments
    6. Allocation to plan participants

Benefits

The panel will review these and other key issues:

  • How should revenue sharing agreements be drafted so that revenue sharing payments are not considered plan assets?
  • What are the fiduciary due diligence requirements related to revenue sharing agreements?
  • What are the best practices in utilizing excess revenue payments and credit allocation to plan participants?

Faculty

Matta, Richard
Richard K. Matta

Principal
Groom Law Group

Mr. Matta's experience includes advising large plan fiduciaries, financial institutions and investment...  |  Read More

Oringer, Andrew
Andrew L. Oringer

Partner
Dechert

Mr. Oringer is co-chair of his firm's ERISA and Executive Compensation group, and leads the firm’s...  |  Read More

Other Formats
— Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

$297

Download

$297