Insights

Share

Best Practices for Plan Sponsors #8

Posted on May 21, 2019, by Todd Anderson in best practices, fiduciary. Comments Off on Best Practices for Plan Sponsors #8

Best Practices: Lessons Learned from Litigation—the Anthem Case

I am writing two series of articles that together are called “The Bests.” One is about Best Practices for Plan Sponsors, while the other is about the Best Interest Standard of Care for Advisors. Each series is numbered separately to make it easier to identify the articles that are most relevant to you.

This is the eighth of the series about Best Practices for Plan Sponsors.

Plan sponsors should be aware of the latest trends in fiduciary litigation in order to develop practices to manage the risk of being sued and, if sued, of being liable. The recent settlement of the Anthem case is a good example of the importance of using appropriate share classes and of other practices in selecting investments and monitoring service providers. This article discusses the complaint, the settlement and risk … Read More »

Share

Fred Reish Featured on the Cover of 401(k) Specialist Magazine

Posted on April 25, 2019, by Todd Anderson in Uncategorized. Comments Off on Fred Reish Featured on the Cover of 401(k) Specialist Magazine

Los Angeles partner Fred Reish was featured on the cover of 401(k) Specialist Magazine, and was quoted extensively in the cover story titled “Fred Knows 401k Fiduciary.” The article states that after the demise of the Department of Labor’s Conflict of Interest Rule, Fred is “about as close as one can get to someone ‘in the know.’ His expertise and experience have him (always) in demand.”

Share

Best Practices for Plan Sponsors #7

Posted on February 12, 2019, by Fred Reish in 401(k), best practices, fiduciary, Plan Sponsors, Recordkeeper. Comments Off on Best Practices for Plan Sponsors #7

Best Practices: Plan Success by the Numbers (Part 1)

I am writing two series of articles that together are called “The Bests.” One is about Best Practices for plan sponsors, while the other is about the Best Interest Standard of Care for advisors. Each series is numbered separately to make it easier to identify the subject that is most relevant to you.

This is the seventh of the series about Best Practices for Plan Sponsors.

Most companies have budgets for their business operations . . . and then regularly compare budget-to-actual. In other words, they compare their actual expenses to the budgeted amounts to see if they are on track to accomplish their financial goals. That’s pretty standard, and there is nothing remarkable about it. But, why don’t plan sponsors and fiduciaries, for example, plan committees, use that same approach for their … Read More »

Share

Alert: FINRA’s 529 Plan Share Class Initiative to Self-Report

Posted on February 5, 2019, by Fred Reish in best interest, FINRA. Comments Off on Alert: FINRA’s 529 Plan Share Class Initiative to Self-Report

FINRA is taking the position that broker-dealers need to evaluate the long-term costs of different share classes in 529 plans. In effect, FINRA is imposing a “best interest” standard on 529 recommendations. For a description of FINRA’s expectations and its new self-disclosure program, here is an article by several of our Drinker Biddle attorneys, including me: FINRA’s 529 Plan Share Class Initiative to Self-Report

Share

Open Questions on Open MEPs

Posted on January 30, 2019, by Fred Reish in 401(k), DOL Activity. Comments Off on Open Questions on Open MEPs

One of the shiny new coins of the 401(k) realm is “Open MEPs.” It’s anticipated that Congress will pass legislation this year that permits Open MEPs. Legislation is needed because of DOL guidance that, in essence, prohibits MEPs that are “open” to all employers. But, what is an Open Multiple Employer Plan? What other kinds of MEPs are there? How do the people that set up MEPs get paid? Here is an article that I, and my partners, Bruce Ashton and Josh Waldbeser, wrote on that subject for ASPPA.

Share

Best Practices for Plan Sponsors #6

Posted on January 16, 2019, by Fred Reish in 401(k), best practices, DOL Activity, fiduciary, Plan Sponsors, prudent. Comments Off on Best Practices for Plan Sponsors #6

Best Practices: Why Wait Until After You are Sued?

I am writing two series of articles that together are called “The Bests.” One is about Best Practices for plan sponsors, while the other is about the Best Interest Standard of Care for advisors. Each series is numbered separately to make it easier to identify the subject that is most relevant to you.

This is the sixth of the series about Best Practices for Plan Sponsors.

I am surprised that, after all of the fiduciary litigation against 401(k) plan sponsors, many plan sponsors and their committees have not taken the basic steps to minimize the risk of being sued, or if sued, of being liable. In most of the settled cases, the plaintiffs’ class action attorneys require that certain conditions—or “best practices”—be adopted by the plan fiduciaries. And, in settlement after settlement, those … Read More »

Share

Best Interest Standard of Care for Advisors #7

Posted on January 10, 2019, by Fred Reish in 401(k), best interest, fiduciary, Plan Sponsors, prudent, Registered Investment Advisers. Comments Off on Best Interest Standard of Care for Advisors #7

What Does Best Interest Mean . . . In the Real World? (Part 4)

I am writing two series of articles that together are called “The Bests.” One is about Best Practices for plan sponsors, while the other is about the Best Interest Standard of Care for advisors. Each series is numbered separately to make it easier to identify the subject that is most relevant to you.

This is the seventh of the series about the Best Interest Standard of Care.

In my last three posts (Best Interest Standard of Care for Advisors #4 and #5 and #6), I discuss the Best Interest standard of care and its practical application. This article discusses a novel approach for compliance with the fiduciary standard for the selection of investments for 401(k) plans. All the more interesting, the approach was part of an opinion of the U.S. … Read More »

Share

Best Interest Standard of Care for Advisors #6

Posted on December 11, 2018, by Fred Reish in best interest, fiduciary, prudent, SEC. Comments Off on Best Interest Standard of Care for Advisors #6

What Does Best Interest Mean . . . In the Real World? (Part 3)

I am writing two series of articles that together are called “The Bests.” One is about Best Practices for plan sponsors, while the other is about the Best Interest Standard of Care for advisors. Each series is numbered separately to make it easier to identify the subject that is most relevant to you.

This is the sixth of the series about the Best Interest Standard of Care.

In my last two posts (Best Interest Standard of Care for Advisors #4 and #5), I discussed the definition of the Best Interest standard of care, with a particular focus on the duty to exercise care, skill, prudence and diligence in developing recommendations for investors. Those articles commented on the consistency in the Best Interest and fiduciary standards being developed by the SEC … Read More »

Share

Best Interest Standard of Care for Advisors #5

Posted on November 28, 2018, by Fred Reish in best interest, Reg BI, Registered Investment Advisers, RIA, SEC. Comments Off on Best Interest Standard of Care for Advisors #5

What Does Best Interest Mean . . . In the Real World? (Part 2)

I am writing two series of articles that together are called “The Bests.” One is about Best Practices for plan sponsors, while the other is about the Best Interest Standard of Care for advisors. Each series is numbered separately to make it easier to identify the subject that is most relevant to you.

This is the fifth of the series about the Best Interest Standard of Care.

My last article, Best Interest Standard of Care for Advisors #4, discussed different definitions of a “best interest” standard of care. The point of that article is that, while there may be slight differences in the wording, the rules converge to require that an advisor (and the advisor’s supervisory entity) act with care, skill, diligence and prudence to make recommendations that are in … Read More »

Share

Best Interest Standard of Care for Advisors #4

Posted on November 13, 2018, by Fred Reish in 401(k), 403(b), best interest, DOL Activity, prudent, Reg BI, Registered Investment Advisers, RIA, SEC. Comments Off on Best Interest Standard of Care for Advisors #4

What Does “Best Interest” Mean? (Part 1)

I am writing two series of articles that together are called “The Bests.” One is about Best Practices for plan sponsors, while the other is about the Best Interest Standard of Care for advisors. Each series is numbered separately to make it easier to identify the subject that is most relevant to you.

This is the fourth of the series about the Best Interest Standard of Care.

“Best Interest” has become part of the American lexicon . . . as an aspirational goal or a demanding standard—depending on the point of view. But, what does best interest mean? It may mean different things to different people . . . and perhaps even to different regulators. However, I believe that most people would agree on the definition in this article.

As I read the guidance issued by the … Read More »

Share





Recent Insights

Best Practices for Plan Sponsors #8
Best Practices: Lessons Learned from Litigation—the Anthem Case

I am writing two series of articles that together are called “The Bests.” One is about Best...

Fred Reish Featured on the Cover of 401(k) Specialist Magazine

Los Angeles partner Fred Reish was featured on the cover of 401(k) Specialist Magazine, and was quoted extensively in the cover story titled “Fred...

Best Practices for Plan Sponsors #7

Best Practices: Plan Success by the Numbers (Part 1)

I am writing two series of articles that together are called “The Bests.” One is about...