ERISA Issues

Exam Weight: ~1-2 questions (2% of exam)

The Employee Retirement Income Security Act of 1974 (ERISA) establishes fiduciary standards and prohibited transaction rules for employer-sponsored retirement plans. Investment advisers who work with qualified plans must understand these requirements to avoid violations and properly serve plan participants.

What You'll Learn

• Fiduciary Issues: who qualifies as a fiduciary, the four core duties, Section 404(c) safe harbor, and Qualified Default Investment Alternatives (QDIAs)
• Investment Policy Statement: what an IPS contains, its legal status, and the consequences of deviating from it
• Prohibited Transactions: parties in interest, Section 406(a) and 406(b) violations, exemptions, and penalties