Theresa S. Gee and Erin M. Sweeney will present on an ERISA webinar titled "What to Expect from the DOL's New Fiduciary Rule," hosted by the Manufacturers Alliance for Productivity and Innovation (MAPI) on May 24, 2016.
On April 6, 2016, the Department of Labor (DOL) released the long awaited ERISA Fiduciary Regulation. The rule is a wholesale re-write of a forty-year-old regulation and, at the same time, the DOL launched an industry-changing prohibited transaction exemption and amended a number of existing prohibited transaction exemptions to address what it views to be harmful conflicts of interest when individuals receive investment advice. Even though the final rule is, in many ways, more livable than the proposed rule, with potential traps for fiduciary, co-fiduciary and knowing participant exposure, failing to act with due caution is fraught with peril.
Fortunately, the rule does not become effective for a year, not until April 2017, four months longer than under the proposed regulation, and many of the disclosures and contractual provisions do not become effective until January 2018. That period provides plan sponsors, fiduciaries, and service providers a well-needed period to acclimate and plan compliance. The webinar will discuss notable aspects of the final rule, including what should be done now to prepare for its implementation and will highlight potential pitfalls and review practical next steps to ensure compliance.