Marketing and Sales of Private Fund Interests & Understanding the DOL Retirement Security Rule

Benefits and executive compensation partner Fred Reish and investment management partner Jeff Blumberg participated in the NSCP National Conference webinar to participate in their respective sessions on CCO liability in uncertain times.

Blumberg discussed the marketing and sales of private fund interests, which as generally marketed and sold in the United States in reliance on exemptions from Securities Act registration under Rule 506(b) or 506(c). His session focused on challenging aspects of broker-dealer registration requirements, best practices with respect to related policies and procedures, and common pitfalls.

Reish’s session focused on understanding the DOL retirement security rule. The Department of Labor Retirement Security Rule, including a broadened definition of investment advice fiduciary, a revised PTE 2020-02, and changes to other PTEs, creates obligations for a broader universe of financial service firms that parallel many of the elements of Regulation BI and advisory fiduciary obligations. In his session, Reish discussed best practices in complying with PTE 2020-02, the impact of amendments to PTEs 2020-02 and 84-24 on annuity business and various approaches to dealing with regulatory uncertainty.