Fred Reish recently presented an educational session for the FFEIC on ERISA fiduciary responsibility and prohibited transactions as they relate to banks, trust departments, federal thrifts, credit unions and similar institutions. The FFEIC includes representatives of the Board of Governors of Federal Reserve Systems, the Federal Deposit Insurance Corporation, the National Credit Administration, the Office of the Controller of the Currency, the Office of Thrifts Supervision, and the State Liaison Committee.
The program focused on ERISA Section 406(b) prohibited transactions. Those are the prohibited transaction rules that specifically apply to fiduciaries, including both discretionary and directed trustees. The program covered issues related to both ERISA plans and individual retirement accounts. Most of the materials were based on guidance that had been issued by the Department of Labor, including prohibited transaction exemptions, advisory opinions, and field assistance bulletins.