243 pages. "The [SEC] is proposing new rules.... to require registered investment advisers and investment companies to adopt and implement written cybersecurity policies and procedures reasonably designed to address cybersecurity risks. The Commission also is proposing a new rule and form under the Advisers Act to require advisers to report significant cybersecurity incidents affecting the adviser, or its fund or private fund clients, to the Commission."  MORE >>

"Currently, RIAs, investment companies and business development companies must comply with various rules that may implicate their cybersecurity practices, such as books-and-records, compliance, and business continuity regulations, but there is no specific cybersecurity program. Building on those requirements, the SEC has proposed new rule 206(4)-9 under the Advisers Act and new rule 38a-2 under the Investment Company Act."  MORE >>

"This is the first cumulative list specifically for preapproved 403(b) plans.... The new list covers changes applicable to 403(b) plans since Oct. 1, 2012.... The on-cycle submission period begins May 2, 2022, and ends May 1, 2023. After IRS has completed its review of all applications, employers will have approximately two years to adopt a newly approved plan document."  MORE >>

"IRS Notice 2022-06 ... has dramatically improved the ability of IRA owners under age 59 and a half to withdraw penalty-free money from their accounts using a 'series of substantially equal periodic payments,' or SOSEPP. Though new longer life expectancies slightly reduce the maximum initial payment under a SOSEPP, a substantial increase in the permitted interest-rate assumption (to 5%) significantly increases it."  MORE >>

"[T]he primary impact of this relief will be in the IRA and 403(b) markets, although participants in qualified plans may be affected too. Plan sponsors and recordkeepers should implement these changes, choosing among the available compliance options -- and consider whether to affirmatively notify current account holders receiving payments before age 59½ of the opportunity to modify the distribution stream."  MORE >>

"The district court ordered the communications to be produced and differentiated between attorney review based on pending or anticipated litigation, which is privileged, and review based on 'a general fear of liability,' which is not privileged. The court was 'not persuaded that the prevalence of other 401(k) litigation during the relevant time period is a specific enough litigation risk' to trigger the protection of attorney-client privilege[.]" [In re GE ERISA Litigation, No. 17-12123 (D. Mass. Jan. 26, 2022).  MORE >>

"A second lawsuit in one week challenges the [DOL's] authority to enforce its Investment Advice Rule governing transactions involving retirement account dollars.... The trade group claimed the guidance essentially 'rewrote' the regulation, in the process, imposing burdensome documentation and investigation requirements on their members.' [American Securities Ass'n. v. DOL, No. 22-0330 (M.D. Fla. complaint filed Feb. 9, 2022)]  MORE >>

"[T]he Supreme Court did not determine the scope of the fiduciaries' monitoring responsibilities. It also did not address the issue of whether the plan's use of multiple recordkeepers (as is not unusual for 403(b) plans) caused the plan to overpay for administrative services." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]  MORE >>

"[W]ith the backdrop of a volatile stock market, 401(k) investors traded an average of 0.017% of balances daily -- the highest levels in a year. The month saw five above-normal trading days, which ... is a stark increase from the three days seen in all of 2021. Investors favored moving assets into fixed income over equity 13 out of 20 days, and total transfers as a percentage of starting balance stood at 0.15%."  MORE >>

"Ignoring the value of non-risky non-financial assets like Social Security, pensions and life annuities can result in significantly overstating the actual amount of investment risk a household may actually be taking. On the other hand, an asset allocation strategy that does not consider funding of Essential Expenses with non-risky investments may understate household investment risk."  MORE >>

43 presentation slides. "The types of alternative investments discussed are: Private Real Estate, Hedge Funds and Private Equity.... This presentation also details current thinking as to the Benefits, Considerations and Challenges of offering alternative investments in DC plans. Potential next steps are provided for fiduciaries considering implementing alternatives in their plan. The summary assessment includes a look at current usage as well as possible future usage of alternative investments in defined contribution plans."  MORE >>

"In response to the increase in claims, insurance carriers universally adjusted Fiduciary Liability insurance terms and conditions. Actions taken include reducing limits offered, increasing retentions and increasing both primary and excess premiums. Additionally, carriers addressed excessive fee exposure by adding separate retentions for excessive fee or class action claims, sub limits for excessive fee claims and/or excessive fee exclusions. Several carriers limited their Fiduciary Liability appetite to excess only placements."  MORE >>

"[T]he SEC is considering whether registrants should be required to disclose additional performance measures ... specifically [1] pre-tax net income, [2] net income and [3] a measure selected by the registrant that represents the most important performance measure used to link compensation actually paid during the fiscal year to company performance.... [T]he reopening release requests comment on the application to smaller reporting companies of the 2015 proposal and the additional disclosure requirements discussed in the reopening release."  MORE >>

"[The SEC] proposal last week to greatly expand what companies would include in their Dodd-Frank 'pay versus performance' disclosure also would require an extensive disclosure of the many performance measures that are most important to companies. Requiring a tabular disclosure of pay measures would prompt companies to reassess how they present the details of their pay programs in their CD&As, so that some companies may decide that a more extensive or different pay discussion is warranted."  MORE >>