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

BARBRI

This CLE course will provide ERISA counsel with the tools necessary to guide fiduciary clients in connection with the review and negotiation of 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 high-profile, multimillion-dollar settlements involving these agreements, plan sponsors and fiduciaries may need to ramp up scrutiny during drafting and implementation.

Counsel to ERISA fiduciaries play a key role in evaluating whether revenue sharing arrangements are or are not plan assets and what processes and controls plan fiduciaries apply in managing these amounts.

Additionally, whether or not revenue sharing payments are considered plan assets, fiduciaries may wish to 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.

Outline

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

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