Federal Court Decision Addresses When an Investment Manager Becomes an ERISA Fiduciary

Investment advisers that become ERISA fiduciaries because the fund is deemed to be a “plan assets” fund subject to ERISA may also be deemed to be a fiduciary with respect to ERISA plans that are investors in that fund.  A recent federal court decision addresses, among other things, circumstances in which an investment manager constitutes a “fiduciary” for ERISA purposes, and whether an ERISA fiduciary is liable for breaches that occurred before it became a fiduciary.  See “Applicability of New Disclosure Obligations under ERISA to Hedge Fund Managers,” Hedge Fund Law Report, Vol. 5, No. 9 (Mar. 1, 2012).

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