Documenting the Relationship to Minimize Risks for Plan Sponsors and Investment Advisors
This CLE webinar will review how best to negotiate and draft investment management agreements (IMAs) with ERISA retirement plan sponsors. The panel will explain best practices for selecting a 3(38) investment manager to reduce personal fiduciary risk and outline key steps in structuring and documenting the investment manager relationship.
ERISA law requires plan fiduciaries to exercise the knowledge and experience of a prudent expert when making investment decisions. Breach of fiduciary duties under ERISA are subject to personal liability. ERISA Section 3(38) defines the investment manager to which the trustees can delegate their duties. An ERISA plan sponsor can delegate investment decisions to an ERISA 3(38) investment manager to mitigate liability and risk for investment decisions. Plan sponsors remain responsible for hiring and monitoring a 3(38) fiduciary and must exercise due diligence to ensure they meet their own fiduciary duty.
ERISA also imposes fiduciary obligations on ERISA investment managers, including the duty to avoid prohibited transactions with "parties in interest" to the ERISA plan, unless an exemption, such as QPAM, exists. However, the exemptions are nuanced, and fund managers must proceed carefully when taking advantage of the exceptions.
Listen as our authoritative panel of attorneys discusses ERISA 3(38) investment managers and offers guidelines for selecting investment managers, negotiating and drafting IMAs, and documenting the investment manager partnership from perspectives of both the plan sponsor and the investment manager.
- Negotiating investment management agreements
- Drafting investment management agreements
- Documenting the investment management partnership
The panel will review these and other key issues:
- What standard of care should plans expect from an investment manager?
- What representations and warranties should an IMA include?
- What protections can side letters offer to plans?
- What types of investments may warrant the use of a QPAM agreement?
Faculty: Mayoung Nham, Principal, Slevin & Hart
Additional faculty to be announced.
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