Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

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Update: 5th Circuit Confirms Decision To Vacate DOL Fiduciary Rule

Posted in Executive Compensation and ERISA

After much anticipation, the US Court of Appeals for the Fifth Circuit on Thursday confirmed its earlier decision to vacate the Department of Labor’s “fiduciary advice rule.” The controversial rule became effective June 2017 and significantly expanded the universe of broker-dealers and other financial advisers subject to ERISA’s fiduciary standards. In March of this year,… Continue Reading

DOL Proposes 18-Month Extension of Transition Period for Compliance With ERISA Fiduciary Investment Advice Rule

Posted in Executive Compensation and ERISA, Investment Companies and Investment Advisers, Private Investment Funds

On August 31, the US Department of Labor proposed an 18-month extension of the full implementation of the Best Interest Contract Exemption and other related exemptions issued under the ERISA fiduciary rule.  Under existing guidance, a fiduciary may comply with the exemptions by adhering to an abbreviated set of requirements referred to as the “impartial… Continue Reading

DOL Proposes to Delay Fiduciary Advice Rule, Requests Comments on Delay and on Costs, Benefits of the Rule

Posted in Executive Compensation and ERISA, Investment Advisers

On March 2, the US Department of Labor (DOL) published a proposed extension (the Proposal) of the effective date of what is commonly referred to as the “fiduciary rule” or the “fiduciary advice rule” (the Rule). The Rule provides that persons who provide investment advice or recommendations for fees or other compensation with respect to… Continue Reading

40 Days Left Until Compliance Date for Variation Margin Rules for Uncleared Swaps

Posted in Derivatives

As part of a global regulatory initiative, the United States, European Union, Canada, Switzerland, Japan, Hong Kong, Singapore and Australia have all adopted, or are in the process of adopting, rules (Margin Rules) that impose mandatory variation margin requirements on non-cleared swaps and, in some cases, non-cleared security-based swaps and FX derivatives (collectively, “Covered Trades”).… Continue Reading

DOL Proposes to Revise Definition of “Fiduciary” Under ERISA

Posted in Executive Compensation and ERISA

On April 20, the US Department of Labor (DOL) published a proposal to revise portions of the definition of a “fiduciary” under the Employee Retirement Income Security Act of 1974, as amended (ERISA) in the Federal Register. Following is a summary of the proposed new rules. Please note that parts of the proposal are very… Continue Reading

Court Finds Private Equity Portfolio Company May Have Liability for Withdrawal by Another Portfolio Company

Posted in Executive Compensation and ERISA

The US Court of Appeals for the First Circuit recently delivered a potentially far-reaching decision for the private equity industry. In a case which involved a typical private equity structure, Sun Capital Partners III, LP, et al. v. New England Teamsters & Trucking Industry Pension Fund, et al., the First Circuit adopted a broad view… Continue Reading

Sixth Circuit Affirms Decision to Enforce Arbitration Provision in Retiree Benefit Dispute

Posted in Litigation

The US Court of Appeals for the Sixth Circuit recently affirmed a district court’s decision to grant defendant-appellee TRW Vehicle Safety Systems, Inc.’s (TRW) motion to compel arbitration, finding that TRW retirees were bound by an arbitration provision in a collective bargaining agreement (CBA) negotiated prior to their retirement. The lower court had held that… Continue Reading

Amendment of Public Company ESOPs may be Required

Posted in Executive Compensation and ERISA

Co-authored by Gregory K. Brown and Ann M. Kim Many public companies allow their employees to invest a portion of their retirement plan balances in company stock. By making a company stock fund an available investment in a 401(k) plan, employees may share the potential gains otherwise reserved for stockholders. If the stock fund is structured to… Continue Reading

US Supreme Court’s Impending Decision on DOMA May Impact Most Employee Benefit Plans

Posted in Executive Compensation and ERISA

Co-authored by Christopher K. Buch. Late last month the US Supreme Court heard oral arguments in two cases concerning same-sex marriage. The Court’s decisions are expected by the end of June and, depending on how the Court rules, the decisions could have a significant impact on employee welfare and retirement plans.  … Continue Reading

IRS Releases Proposed and Final Regulations regarding Health Insurance Premium Tax Credits

Posted in Executive Compensation and ERISA

Co-authored by Christopher K. Buch. On January 30, the Internal Revenue Service released proposed and final regulations regarding the health insurance premium tax credit and the requirement that an employer maintain minimum essential coverage under the Affordable Care Act (ACA). The IRS is preparing to release a series of questions and answers to help individuals… Continue Reading

Employers Must Treat Health Plan Rebates Appropriately

Posted in Executive Compensation and ERISA

One of the many provisions of the Patient Protection and Affordable Care Act, also referred to as the Healthcare Reform Legislation, provides that health insurers must spend a certain portion of the premiums they receive on clinical services and health care quality-improving activities. If an insurer spends less on such services and activities than the… Continue Reading