American Bar Association American Bar Association

Follow the Money: DOL Initiatives and New Litigation on Service Provider Revenue Sharing

SPONSORS: The Sections of Business Law, Health Law, Labor and Employment Law, Real Property, Probate and Trust Law, Taxation, and Tort Trial and Insurance Practice; And the American College of Employee Benefits Counsel

General Information

Thursday, March 29, 2007
A 90-minute TeleConference/Live Audio Webcast
1:00-2:30 pm ET / 12:00-1:30 pm CT / 11:00 am-12:30 pm MT / 10:00 am-11:30 am PT

Congress, GAO, SEC and DOL have all expressed concerns that employers and participants lack adequate information about the fees paid in 401(k) plans and undisclosed arrangements under which services providers receive revenue from the mutual funds and other investment vehicles in addition to amounts paid directly by the employer or plan. Recently a number of class action lawsuits have been filed against employers and service providers alleging that plan fiduciaries have allowed 401(k) plans have paid excessive and improper fees and have failed to disclose revenue sharing payments to participants.

Among other topics, the Panel will cover the following:
  • DOL’s request for information concerning disclosure of fees and expenses to participants
  • DOL’s proposal to revise the service provider exemption regulation
  • DOL’s proposal to require disclosure of indirect consultant and advisor fees on Form 5500
  • DOL’s new national enforcement policy - the Consultant/Advisor Program (CAP)
  • Claims and defenses in the recent class action cases
  • What plan fiduciaries should do to determine if service provider compensation is reasonable

  • Moderator:
    Nell Hennessy, Fiduciary Counselors Inc., Washington, DC
    Lynn Sarko, Keller Rohrbach LLP, Seattle, WA
    Chris J. Rillo, Groom Law Group, Washington, DC
    Kristen L. Zarenko, Office of Regulations and Interpretations, EBSA, US Department of Labor, Washington, DC

    Follow the Money: DOL Initiatives and New Litigation on Service Provider Revenue Sharing
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