Proprietary Funds in 401(k) and Retirement Plans: A View From the Trenches
Navigating Prohibited Transaction Rules, Fiduciary Duties, and the Recent Surge in DOL Investigations and Civil Litigation
A live 90-minute CLE webinar with interactive Q&A
Wednesday, August 9, 2017
1:00pm-2:30pm EDT, 10:00am-11:30am PDT
This CLE webinar will discuss the legal issues arising from the offering of proprietary or affiliated products in ERISA-covered retirement plans sponsored by financial services companies. The panel will discuss the rise in regulatory and litigation challenges to proprietary funds, and explain how plan sponsors and fiduciaries can avoid or mitigate the additional risk these offerings create.
Description
Financial services companies typically offer their own products—mutual funds, insurance contracts, collective trusts—to their employees in their company-sponsored 401(k) and retirement plans. These proprietary, or affiliated, products can create additional risks for sponsors and fiduciaries and raise complicated issues under ERISA’s prohibited transaction and fiduciary rules.
These complex issues have recently moved front and center in both the regulatory and litigation arenas as private plaintiffs and the government challenge the prudence and performance of these investments and associated fees and expenses. These challenges raise the specter of a finding of imprudence related to a sponsor’s own products that are marketed to the sponsor’s customers, an unenviable situation that can expose a plan sponsor to costly litigation or regulatory action.
Listen as our experienced panel of ERISA attorneys discusses the legal issues that can arise from the offering of proprietary or affiliated products in ERISA-covered retirement plans sponsored by financial services companies. The panel will discuss the rise in regulatory and litigation challenges to proprietary funds and explain how plan sponsors and fiduciaries can avoid or mitigate the additional risk these offerings create.
Outline
- Prohibited Transaction Exemption PTE 77-3 and the residual duties of prudence and loyalty
- Related problems of 12b-1 fees and sales commissions
- Problems with “seeding” newly established proprietary products
- DOL investigative initiative and the surge in class action complaints
- Strategies for reducing litigation risk
Benefits
The panel will review these and other key issues:
- What are the peculiar problems associated with the offering of proprietary funds, and the varied—and peculiar—legal standards governing their use?
- How might a finding of a fiduciary breach impact the sponsor’s business model?
- What steps can be taken to avoid problems before they erupt into a DOL investigation and/or an ERISA class action?
Faculty
Jeremy P. Blumenfeld, Partner
Morgan Lewis & Bockius,
Philadelphia
Mr. Blumenfeld represents defendants on a range of employee benefit litigation matters, including numerous ERISA class actions. Co-chair of the firm’s ERISA litigation practice, Jeremy’s experience includes defending class action claims challenging the administration of 401(k) savings plans, stock drop litigation involving 401(k) savings plans, cash balance and other defined benefit plans, and employee stock ownership plans (ESOPs) and traditional severance pay plans. He also advises clients on litigation and risk avoidance.
Brian T. Ortelere, Partner
Morgan Lewis & Bockius,
Philadelphia
Mr. Ortelere is a Partner in the New York and Philadelphia offices, and is Co-Chair of the ERISA Litigation Practice at Morgan Lewis. His practice covers the full range of employee benefit defense litigation matters, including every variety of ERISA class action. He has particular expertise in defending class claims challenging the administration of defined benefit pension plans, 401(k) and 403(b) savings plans and ESOPs, and has abundant experience in representing fiduciaries and plan service providers in governmental investigations related to benefit plans. Along with the ERISA Litigation Practice he co-chairs, Mr. Ortelere is ranked in the top three ERISA litigators nationwide by Chambers and Partners.
Live Webinar
Live Webinar $297.00
Add a colleague on the same connection in the same room for only $97.00 in the shopping cart or by calling customer service.
This webinar is eligible for at least 1.5 general CLE credits.
CLE credits are not available for PR.
*In KS, OH, PA, for more than 1 attendee on the connection you must contact Strafford CLE via email or call 1-800-926-7926 ext. 35 prior to the program for special instructions.
Recordings
CLE On-Demand - Streaming Video
Includes recorded streaming video of full program plus PDF handouts.
On-demand is the only recorded format recognized for CLE credits in DE, IN, KS, LA, MS, NC, OH, OK, SC, TN, VA, WI.
AK, AZ, CA, CO, CT, DE, FL, GA, HI, IA, ID, IL, IN*, KS, KY, LA, ME, MN, MO, MT, NC, ND, NH**, NJ, NM, NV, NY, OH*, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WV, WY (Note: Some states restrict CLE eligibility based on the age of a program. Refer to our state CLE Map for additional information.)
*Only available for attorneys admitted for more than two years. For OH CLE credits, only programs recorded within the current calendar year are eligible - contact the CLE department for verification.
**NH attendees must self-determine if a program is eligible for credit and self-report their attendance.
CLE On-Demand Video $297.00
Available 48 hours after the live event
Recorded Event
Includes full event recording plus handouts (available after live webinar).
Strafford is an approved provider and self-study CLE credit is available in most states.
AK, AZ, CA, CO, CT, FL, GA, HI, IA, ID, IL, KY, ME, MN, MO, MT, ND, NJ, NM, NY, OR, PA, TN, TX, UT, VT, WA, WV, WY (Note: Some states restrict CLE eligibility based on the age of a program. Refer to our state CLE Map for additional information.)
Strafford will process CLE credit for one person on each recording.
Additional copies of a recording can be purchased at a discount. Please call Strafford Customer Service toll-free at 1-800-926-7926 ext 10 or email customerservice@straffordpub.com to place your order.
Recorded Webinar Download $297.00
Available 48 hours after the live event
Recorded Audio Download (MP3) $297.00
Available 24 hours after the live event
DVD (Slide Presentation with Audio) $297.00
plus $9.45 S&H
Available ten business days after the live event
Registration Plus Recorded Event
Best value!
Live Webinar & Webinar Download $394.00
Recorded Webinar Download Only $97.00 with Registration/Webinar Combo
Live Webinar & Audio Download $394.00
Recorded Audio Download (MP3) Only $97.00 with Registration/MP3 Combo
Live Webinar & DVD $394.00 plus $9.45 S&H
DVD (Slide Presentation with Audio) Only $97.00 with Registration/DVD Combo
Webinar
Strafford webinars offer several options for participation: online viewing of speaker-controlled PowerPoint presentations with audio via computer speakers or via phone; or audio only via telephone (download speaker handouts prior to the program). Please note that our webinars do not feature videos of the presenters.
CLE Credits By State
Customer Reviews
The PowerPoint presentation made things easy to understand.
Ian Weinberger
The Lambos Firm
Great overall summary of ERISA issues.
Shannon Awsumb
Anthony Ostlund Baer & Louwagie
Good materials plus well prepared presenters and a good level of detail.
John H. Merkle
Fredrikson & Byron
The best seminar I have attended on this topic! The speakers did an outstanding job making the topic understandable.
Craig Kovarik
Husch Blackwel
The webinar addressed exactly what I needed for this area of my practice. Very useful information and very impressive program.
Nona Massengill
Williams Mullen
Employment & ERISA Advisory Board
Special Counsel
Schulte Roth & Zabel
Partner
Holland & Hart
Director
Goulston & Storrs
Partner
Kelley Drye
Partner
Perkins Coie
Partner
Hoover Kernell
Shareholder
Littler Mendelson
Partner
Wick Phillips
Partner
Shook Hardy & Bacon
Shareholder
Greenberg Traurig
Partner
Gibson Dunn & Crutcher
Member
Epstein Becker & Green
Partner
Freeman Freeman Smiley
Shareholder
Greenberg Traurig
Our Guarantee
Strafford webinars are backed by our 100% Unconditional Money-Back Guarantee: if you are not satisfied with any of our products, simply let us know and get a full refund. For more information regarding complaints and refunds, please contact us at 1-800-926-7926 ext 10. Complaints regarding this program can be submitted via the course evaluation found in the “Thank you” e-mail at the end of the course.