Government Sides With Plaintiffs In Fidelity ERISA Float Dispute

Mealey's (March 2, 2016, 7:17 AM EST) -- BOSTON — A practice by Fidelity Management Trust Co. (FMTC) of diverting proceeds from the sale of plan-owned mutual fund shares and of using income generated from those proceeds for FMTC’s own benefit or for the benefit of nonplan entities constitutes a prohibited transaction under Sections 406(a)(1) and (b)(1) of the Employee Retirement Income Security Act, as well as a breach of fiduciary duty under ERISA Section 404(a)(1), plan participants argue in a Feb. 22 reply brief filed with the First Circuit U.S. Court of Appeals...
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