Retirement Plan Investments: Plan Asset Hedge Fund; PE Fund Investing, 401k and IRA; ESG and Plan Voting Regulations

Strafford

This CLE webinar will guide employee benefits and asset management counsel on critical issues and recent developments impacting retirement plan investments. The panel will discuss new proposed regulations for consideration of environmental, social, and corporate governance (ESG) and plan voting, private equity offerings to 401ks and IRAs, challenges of plan asset hedge fund and private equity fund investing, and other key issues.

Description

The DOL has recently issued proposed regulations and guidance that significantly impact retirement plan investments. This latest installment focuses on selecting plan investments with private equity components, the ESG factors, and the exercise of proxy voting and other shareholder rights.

In addition, fiduciaries and their counsel must recognize the challenges of investing in plan asset hedge funds and private equity funds and offerings made to 401ks and IRAs. An in-depth understanding of these issues and regulations is essential to avoid unintended liability and potential claims.

A fiduciary of an individual account plan may, consistent with ERISA requirements, offer as an investment option under the plan a professionally managed asset allocation fund with a private equity component. However, due to the complexity, limited transparency, and liquidity of private equity investments, including a private equity component in an investment option can increase the potential liability for fiduciaries, who have a legal duty to select prudent investment options. ERISA also requires fiduciaries to monitor designated investment alternatives under the plan. Fiduciaries are liable for any losses resulting from the failure to monitor these investments prudently.

On Oct. 14, 2021, DOL published a proposed regulation to clarify the DOL's views regarding the extent to which fiduciaries of ERISA-governed retirement and benefit plans can or should consider ESG factors when selecting plan investments. Employee benefits and asset management counsel must become familiar with these regulations and plan accordingly.

Listen as our panel discusses new proposed regulations for consideration of ESG and plan voting, private equity offerings to 401ks and IRAs, challenges of plan asset hedge fund and private equity fund investing, and other key issues.

Outline

1. ERISA fiduciary duties for institutional investors
   1. Disclosure
   2. Compliance
   3. Valuation
2. Hedge funds and private equity fund investing
3. New proposed ESG and plan voting regulations
4. Trends in litigation involving plan fiduciaries and fund managers
5. Best practices for developing due diligence plans

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