Aon Plc · NYSE:AON
Aon — Conference Presentation (June 2016)
25 slides from Aon's conference presentation, Jun 7, 2016
Slide 1: A Deep Dive Into ERISA's Fiduciary Rules – What Do They Mean for Plan Sponsors
A Deep Dive Into ERISA’s Fiduciary Rules – What Do They Mean for Plan Sponsors June 7, 2016 Nothing in this presentation should be construed as legal or investment advice. Please consult with your independent professional for any such advice. To protect the confidential and proprietary information i
Slide 2: Moderator and Speakers
A Deep Dive Into ERISA’s Fiduciary Rules – What Do They Mean for Plan Sponsors? June 7, 2016 Tom Moderator Meagher Senior Partner Leader of the Legal Consulting Practice Aon Hewitt Larry Russ Elizabeth Speakers Bennett Ivinjack Groenewegen Leader of Strategy Program Senior Partner Associate Partner
Slide 3: Agenda
Agenda Section 1 Recent Developments and Effective Dates Section 2 Brief Overview of Final Regulations Section 3 What Questions Should be Considered? Section 4 Receiving/Providing Fiduciary Investment Advice Section 5 Receiving/Providing Recordkeeping Services Section 6 Next Steps Section 7 Question
Slide 4: Recent Developments and Effective Dates
Recent Developments and Effective Dates Section 1 Nothing in this presentation should be construed as legal or investment advice. Please consult with your independent professional for any such advice. To protect the confidential and proprietary information included in this material, it may not be di
Slide 5: Recent Developments and Effective Dates
Recent Developments and Effective Dates May 24, 2016 Senate passes a similar resolution 56-41 supported by all Republicans and three Democrats President Barack Obama has already April 28, 2016 promised to veto January 1, 2018 House passes a the measure (H.J. Certain prohibited resolution on
Slide 6: Brief Overview of Final Regulations
Brief Overview of Final Regulations Section 2 Nothing in this presentation should be construed as legal or investment advice. Please consult with your independent professional for any such advice. To protect the confidential and proprietary information included in this material, it may not be disclo
Slide 7: ERISA Section 3(21) – Investment Advice
ERISA Investment Advice No change to the statutes comprising ERISA and the Internal Revenue Code ERISA Section 3(21) provides in relevant part that ERISA a person is a fiduciary with respect to a plan to Section 3(21) – the extent – It exercises any discretionary authority or Investment discreti
Slide 8: Covered Plans Subject to Final Fiduciary Regulations
Covered Plans Subject to Final Fiduciary Regulations The final fiduciary rules cover employee benefit plans (as defined in Section 3(3) of ERISA and Section 4975(e)(1) of the Code) and thus may ERISA include: Investment – Retirement plans and certain health and welfare plans that have an investmen
Slide 9: What Actions Constitute Investment Advice
What Actions Constitute Investment Advice Recommendations involving securities or other property – to the extent that the person recommends holding, acquiring, disposing or exchanging securities or other investment property Recommendations Recommendations involving rollovers, transfers or distri
Slide 10: Not All Conduct Rises to the Level of a "Recommendation"
Not All Conduct Rises to the Level of a “Recommendation” Platform Providers – to the extent that a service provider markets or provides a platform of investments from which the plan fiduciary may select Selection and Monitoring Assistance – to the Certain Actions extent that a person may identif
Slide 11: Other Considerations for Plan Sponsors
Other Considerations for Plan Sponsors Actions Taken by Employees of the Plan Sponsor – to the extent that the plan sponsor employee’s position does not involve providing investment advice, the employee is not registered under securities/insurance laws, and only Other received normal compensation
Slide 12: What Questions Should Be Considered?
What Questions Should Be Considered? Section 3 Nothing in this presentation should be construed as legal or investment advice. Please consult with your independent professional for any such advice. To protect the confidential and proprietary information included in this material, it may not be discl
Slide 13: What Questions Should be Considered in Responding to the Final Regulations?
What Questions Should be Considered in Responding to the Final Regulations? Plan Investment Record- Participants Sponsors Committees keepers Do we provide investment Are we receiving plan What information is provided Who are they relying upon for education to our employees? investment advice from to
Slide 14: Receiving/Providing Fiduciary Investment Advice
Receiving/ Providing Fiduciary Investment Advice Section 4 Nothing in this presentation should be construed as legal or investment advice. Please consult with your independent professional for any such advice. To protect the confidential and proprietary information included in this material, it may
Slide 15: Fiduciary Investment Advice: Role of Third-Party Advisers
Fiduciary Investment Advice Role of Third-Party Advisers Fiduciary Third-Party Impact of New Advice Advisers’ Action Regulations Recommendations Advice on acquiring, holding, Little to no impact for involving investment exchanging, disposing of securities or larger institutional property investors s
Slide 16: Fiduciary Investment Advice: What Is a Recommendation?
Fiduciary Investment Advice What Is a Recommendation? A “Recommendation” What you is considered to be should ask your made when directly investment adviser: or indirectly: A person represents or acknowledges acting Are you contractually serving us as a fiduciary? as a fiduciary within the meanin
Slide 17: Receiving/Providing Recordkeeping Services
Receiving/ Providing Recordkeeping Services Section 5 Nothing in this presentation should be construed as legal or investment advice. Please consult with your independent professional for any such advice. To protect the confidential and proprietary information included in this material, it may not b
Slide 18: Recordkeepers – Providing Recordkeeping Services
Recordkeepers – Providing Recordkeeping Services Recordkeeper Concern Rationale Call center representatives need to be clear on what Call Center Service Delivery Scripts constitutes education and guidance, and avoid providing advice Distribution is a point that there is a risk of offering Written Pl
Slide 19: Plan Sponsors – Receiving Recordkeeping Services
Plan Sponsors – Receiving Recordkeeping Services Plan Sponsor Action Rationale Assure that investment information on how to best Evaluate Existing Investment save for retirement is not “investment advice” that Education Materials would cause plan sponsor to become an ERISA fiduciary (or be exposed t
Slide 20: Next Steps
Next Steps Section 6 Nothing in this presentation should be construed as legal or investment advice. Please consult with your independent professional for any such advice. To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any th
Slide 21: Next Steps for Plan Sponsors
Next Steps for Plan Sponsors Step 1 Step 2 Step 3 Step 4 Step 5 Inventory Identify Review Consider Develop all plans all third investment- co-fiduciary governance parties related data responsibility process Step 1 Inventory all plans and arrangements that may be subject to the fiduciary rules Step 2
Slide 22: Next Steps for Plan Sponsors
Next Steps for Plan Sponsors Step 1 Step 2 Step 3 Step 4 Step 5 Inventory Identify Review Consider Develop all plans all third investment- co-fiduciary governance parties related data responsibility process Step 3 Step 4 Review of investment-related materials provided to Consider co-fiduciary respon
Slide 23: Questions and Answers
Questions and Answers Use the webinar dashboard to submit questions during the live presentation or Section 7 email retirement@aonhewitt.com with questions for our speakers. Nothing in this presentation should be construed as legal or investment advice. Please consult with your independent professio
Slide 24: Contact List
Contact List Thomas Meagher Aon Hewitt +1.732.302.2188 thomas.meagher@aonhewitt.com Larry Bennett Aon Hewitt +1.781.906.2385 larry.bennett@aonhewitt.com Russ Ivinjack Aon Hewitt Investment Consulting, Inc. +1.847.442.3981 russ.ivinjack@aonhewitt.com Elizabeth Groenewegen Aon Hewitt +1.415.486.6934 e
Slide 25: About Aon Hewitt
About Aon Hewitt Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance an