Tag: Fiduciary
New Front on Fiduciary Litigation?
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As employers have become more attuned to their fiduciary responsibilities, plaintiffs’ attorneys have had to dig deeper to find a basis for suing plan sponsors. Two recent court decisions (Hutchins v. HP Inc and Perez-Cruet v. Qualcomm Inc) reflect diametrically opposing judicial responses to the same new litigation strategy, The Claims Both Hutchins and Perez-Cruet […] Read more »
New Lawsuit Targets TIAA and Morningstar
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A new fiduciary case, Kelley v. TIAA, has been filed against TIAA and Morningstar. This case is different than the typical “fees are too high and returns are too low” type of case –it contains some significant new accusations against TIAA and raises new issues. If this case succeeds, it could have some far-reaching implications. […] Read more »
If At First You Don’t Succeed…
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The DOL has finalized new rules defining who is an investment fiduciary under ERISA; this marks the DOL’s latest effort to replace rules issued in 1975. Read more »
DOL Tries (Again) to Redefine ERISA Investment Fiduciary
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DOL takes another swing at redefining investment fiduciaries Read more »
Courts of Appeals Reject Generalized Allegations
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The ERISA world focused much energy and attention on the U.S. Supreme Court’s decision in Hughes v. Northwestern University, in which the Court reinstated a fiduciary suit against Northwestern University. In the aftermath of the Court’s decision, many analysts concluded that the decision would make life even more difficult for plan fiduciaries seeking to fend […] Read more »
Supreme Court Weighs in (Marginally) in Fiduciary Litigation
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Fiduciaries responsible to exercise prudence in all decisions—not just some. Read more »
Fiduciary Litigation Update
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Plaintiffs’ must use truly comparable benchmarks in claiming imprudent fiduciary decisions. Read more »
Outgoing Administration Offers a Few Parting Shots
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Recent guidance from the DOL illustrates the outgoing administration’s desire to leave its mark. Read more »
DOL Completes Trifecta of Questionable Policies
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New DOL guidance would provide advisors with incentives to sell commissionable products. Read more »
DOL Delivers Lump of Coal to ESG Funds
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The U.S. Department of Labor has issued new proposed regulations that provide guidance on the process that plan fiduciaries should use in selecting ESG investments. In issuing the proposed regulations the DOL targets ESG funds and creates new requirements–and hurdles-to the use of such funds. Read more »
Fee Compression: Fiduciaries Take Note
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A number of long-term market trends are creating significant pressure on bundled recordkeepers’ revenues. The recordkeepers are responding to these revenue pressures through a variety of ways that impose additional costs on plans and participants. Read more »
Dancing on the Head of a Pin
The battle over the appropriate standard of conduct for financial advisers rages on. One of the most important distinctions in this battle is the difference between the responsibilities of an investment adviser and a broker. And yet, the current focus on the differences between advisers and brokers is missing a huge gap – consumers do not understand the niceties of this broker vs adviser difference and the confusion created by these rules is costing consumers billions of dollars per year. Read more »
Et Tu, Wells Fargo?
A recent article in the Wall Street Journal reported that Wells Fargo bank was under investigation for practices in the bank’s retirement division. According to the article the investigation focuses on practices intended to move clients into more expensive individual retirement accounts when they retire or leave their jobs. The article also noted that the […] Read more »
Court of Appeals Strikes Down Fiduciary Rule
On March 15 the U.S. Court of Appeals for the Fifth Circuit struck down the DOL’s new fiduciary rule. This adds yet more uncertainty and confusion to a regulatory, legal and political tale that already has more than its share of … uncertainty and confusion. This blog post tries to make some sense of what […] Read more »
Fiduciary Lawsuits: A New Chapter Opening?
A new chapter may be opening in the ongoing saga of litigation against plan fiduciaries. This new chapter could lead plan sponsors and advisors to rethink – and expand – their view of the scope of their fiduciary responsibility. On January 10, the plaintiffs in the lawsuit against New York University’s plans filed an amended […] Read more »
Do What You Say You Are Going to Do
The Department of Labor recently filed a lawsuit against Macy’s department store (Acosta v. Macy’s, Inc., S.D. Ohio, No. 1:17-cv-00541, complaint filed 8/16/17). The lawsuit has received some attention among benefits professionals; but this attention has focused on one aspect of the DOL complaint – claims that the tobacco surcharge imposed under the Macy’s health […] Read more »