“The scope and complexity of ERISA has led to a widespread lack of understanding of both its basic principles - and the liabilities to which trustees and fiduciaries may be subjected. This compact new guide clarifies both in simple, understandable terms. Financial advisors will find it particularly useful in establishing compliance procedures within their practices - and every advisor in your firm should have a copy.” - Harold Evensky, Chairmain, Eversky Group and author of the best selling book, Wealth Management
The landmark ERISA legislation ushered in a new set of protections for participants in employee benefit plans, and the trustees and fiduciaries who administer them.
But, as beneficial as ERISA has proven to be for all involved - those who need to comply with it most have found its far-reaching, densely written directives difficult to decipher. Consequently, many financial advisors fear they are not in compliance. And, as the Enron debacle has illustrated, non-compliance could leave advisors and fiduciaries open to liability challenges.
Now, Thornburg Securities president Ken Ziesenheim clears the air and shows professionals how to protect themselves, their firms and their clients by adhering to ERISA specifications. In clear, concise terms Ken explains 4 key provisions of ERISA which will keep anyone who writes investment objectives for clients or hires an outside manager to oversee funds - in compliance. He covers all the critical steps including …
With sample forms, policy statements, a glossary of terms and more - Ken Ziesenheim makes understanding - and complying with ERISA - easy.
Foreword i
Introduction 1
Chapter 1. Fiduciary Conduct 5
Chapter 2. Liabilities and Penalties 7
Chapter 3. Government Agencies 11
Chapter 4. Prudent Investor Rule 13
Chapter 5. Uniform Prudent Investor Act 17
Chapter 6. Prudent Investment Procedures 25
Chapter 7. Written Investment Policy 29
Chapter 8. Sample: Investment Policy Statement 35
Chapter 9. Investment Management Procedures 45
Chapter 10. Diversification of Plan Assets 47
Chapter 11. Asset Allocation 53
Chapter 12. Risk Management 57
Chapter 13. Prohibited Investment Transactions 59
Chapter 14. Monitoring and Evaluation 61
Chapter 15. The Investment Professional 63
Chapter 16. Investment Management Consultant 71
Chapter 17. 404(C) Plan 79
Chapter 18. 401(K) Plans 95
Chapter 19. Summary 99
Chapter 20. Appendix A - Supplement to A Management Agreement 101
Glossary of Investment Terminology 105
Bibliography 124
