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IRS Offers a 162(m)-Brace for the Holidays

"The proposed regulations provide guidance on ... [1] the grandfathering rule, [2] changes to the definition of publicly held corporation, [3] changes to the definition of covered employee, and [4] changes to the definition of the compensation subject to the deduction limit."

Proposed Transparency in Health Coverage Rule: Potential Implications for Self-Insured Health Plans

"The Cost Sharing Disclosure would mandate that Plans ... provide Participants with a clear estimate of their cost-sharing liability for covered items or services.... [T]he public disclosure of provider rate data may allow self-insured plans to compare their network rates to those offered to similarly situated plans in the same network and across competing network providers.... Note that the proposed rule would allow Plans to delegate responsibility and liability for Cost Sharing Disclosures to third parties, such as the Plan's TPA or ASO provider. While Plans may also delegate responsibility for Rate Disclosures to a third party, the Plan would still be responsible for any liability associated with non-compliance. "

A Website for Sore Eyes: DOL Proposes Electronic Disclosure Regs

"Although mobile retirement plan administration is relatively new, it is quickly gaining popularity. The proposed rule signals that the DOL does not intend to stand it its way. ... Although the proposed regulations make it clear that certain notices can be combined for a given plan, it is not as clear whether notices for multiple plans can be combined."

IRS to Retirees: The Check's in the Mail -- and It's Taxable

"Rev. Rul. 2019-19 addresses the situation where the distribution check is in fact 'received' by the participant. It does not reach the more challenging set of related tax recognition, reporting and withholding issues that arise when plan disbursements are transmitted but not 'actually' received due to death or an incorrect address. In fact, employers and recordkeepers are rarely able to distinguish these situations from the facts in Rev. Rul. 2019-19 unless and until the check is returned as undeliverable[.]"

The Emerging Best Interest and Fiduciary Duty Patchwork: CFP Board's New Standard of Conduct (PDF)

"While broker-dealer and investment adviser firms are not themselves CFPs, such firms frequently permit, and in some cases encourage and even financially support, their registered representatives and supervised persons to obtain the CFP designation. As a result, the CFP Board's new standards have caused many broker-dealers and investment advisers to consider how this CFP fiduciary standard fits within their existing supervisory framework, and whether any action by the firm is called for."

The Emerging Best Interest and Fiduciary Duty Patchwork (PDF)

"[T]his year has seen a number of fiduciary and best interest investment advice regulations at both the federal and state levels. Firms subject to these regulations will face challenges in dealing with rules that will impose a host of new obligations, and that may overlap and conflict with one another. This chart is intended to help firms take stock of the evolving framework and aid firms in putting the pieces together."

The SEC's New Standard of Conduct Rules: Application to Retirement Accounts (PDF)

"Given the retail customer and investor definitions, recommendations to the following are out of scope for both the Regulation BI and Form CRS requirements: [1] Institutions, including providers of retirement plans and accounts. [2] Plan sponsors or other plan fiduciaries, at least with respect to plan-level investment matters unrelated to the retirement savings of specific individuals.... Consistent with the [DOL's] longstanding position under [ERISA], the final rules also make it clear that 'investment education' -- as long as it does not become transaction-specific -- is not a recommendation in the scope of Regulation BI."

Implementation Considerations: Reg BI (PDF)

"Firms that will continue to provide broker-dealer services to customers who are not retail customers ... might want to ensure that their systems are able to identify accounts that would not be considered retail customer accounts subject to Reg. BI. Firms will also want to keep in mind that they will need to preserve their existing compliance and operational structure for customer accounts that are not covered by Reg. BI."

Implementation Considerations for Form CRS (PDF)

"[T]he initial Form CRS relationship summary may be electronically filed with the SEC as early as May 1, 2020 but must be filed no later than June 30, 2020. In addition to this filing requirement, the initial Form CRS relationship summary must be delivered to all existing retail investor clients on an initial, one-time basis within 30 days after the date the firm is first required to file its Form CRS relationship summary with the SEC.... [B]roker-dealers and investment advisers will need to document the delivery of the Form CRS relationship summary, even to prospective clients."

DOL and Treasury Update Guidance Agendas for Employee Benefits

"Of the 44 projects, 17 have been pending for at least five years. One of the three new DOL initiatives -- electronic delivery of required participant notices -- reflects an August 2018 White House directive ... The DOL fiduciary rule remains on the agenda, but the projected date has been further delayed from September 2019 to December 2019[.]"