Minimizing the Risk of Fiduciary Liability in a Declining Investment Market—Enron and other Points of Particular Note
- Topics:
- Fiduciary Liability
- Tags:
- Benefits,
- Regulations,
- Payroll Solutions,
- Investment,
- Human Resources,
- Government,
- Fiduciary Liability,
- ERISA,
- Enron Corp.,
- Employee Benefit Plan,
- ...
- Source:
- Wiley Rein & Fielding
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Overview: The largest accumulation of capital in the world is invested through employee benefit plans, and little if anything in the known universe--let alone anything on Wall Street--has ever successfully defied the old adage that what goes up must come down. In the wake of the Enron debacle, each day’s news brings reports of more class actions under the Employee Retirement Income Security Act (“ERISA”) seeking multimillion-dollar recoveries for alleged fiduciary breaches. There are many steps to take to minimize the risks associated with employee benefit plans, including those that permit participants to direct investments. However, one has to know the rules under which these plans operate. If one does not understand something about the plans and the rules, ask questions. If one does not ask it, a prosecuting attorney may. Second, if one does not know the answer, he should not guess. The odds of guessing wrong and the stakes for guessing wrong are too great.
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Format: PDF | Size: 35KB | Date: Jan 2003 | Pages: 7
