On March 11, 2016, the Department of Labor (DOL) and Securities and Exchange Commission (SEC) each filed amicus briefs in Whitley v. BP, P.L.C.to clarify the responsibilities of a fiduciary under the Employee Retirement Income Security Act of 1974, as amended (ERISA) with control of an employee stock ownership plan, as a company stock fund investment option of a 401(k) plan. The DOL outlined potential corrective actions a fiduciary can take when there is an ongoing fraud (i.e., false or misleading public statements) that would be consistent with a fiduciarys duty of prudence under ERISA. The SECs brief discussed whether these approaches would be consistent with the federal securities laws.
Please see the attached memo for further information.