Conflicts of Interests / Prohibited Transactions

  • Prohibited transaction rules serve to prevent interested parties from using plan assets for their own benefit
  • Best practices:
    • Be aware of the plan’s parties-in-interest
    • Identify common prohibited transactions the plan may encounter
    • Identify available exemptions and comply with their requirements, including required disclosures
    • Draft policies to address conflicts encountered
    • Review policies for effectiveness
    • Document and retain information about specific conflicts and how the plan managed them
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