2022 Trust Forum Presentations

Internal Use Only

Prohibited Transaction Rules

• ERISA prohibits –

Kickbacks

Conflicts of Interest

Self-Dealing

Fiduciaries from receiving any consideration for its own account from any party dealing with the plan in connection with a transaction involving the plan’s assets.

Acting on behalf of a party whose interests are adverse to the plan in any transaction involving the plan.

Dealing with the assets of the plan in the fiduciary’s own interest or for its own account.

• However, statutory and administrative exemptions are available to permit transactions that would otherwise constitute prohibited transactions.

Internal Use Only

Financial Institution Fiduciary Status

• Financial institutions wear various hats. • At the plan-level – • Asset custodian. • Directed trustee. • Discretionary trustee. • At the service provider or “market” level – • Collective investment fund trustee. • Investment adviser / investment manager.