Congress steps into DOL/ERISA fiduciary controversy that’s keeping many appraisers away from ESOP valuations
The 2012 fiscal year appropriations bill in Congress boosts funding levels for the Department of Labor (DOL)—but comes with several constraints on the DOL’s most controversial regulatory proposals, says an update from the Washington D.C. Employment Law blog. Of particular interest to BV appraisers, the current appropriations package includes a provision that would: Prevent the Employee Benefits [...]
DOL hints it won’t give up on ESOP fiduciary claims
In a recent press release, the Department of Labor (DOL) announced that it would re-propose the regulation that would redefine the definition of ERISA fiduciaries. “This press release hints at leaving the provision making ESOP appraisers ERISA fiduciaries when they value stock being acquired by a private company,” says a new post by Mercer Capital, which [...]
ESOP put option argument for mitigating DLOM is ‘fallacious,’ says new article
“Virtually every ESOP appraisal that has been written in the past 10 years has concluded that, both in the case of purchases of company stock by an ESOP from direct shareholders and in the case of subsequent distributions and repurchases of company stock to and from plan participants, the discount for lack of marketability is [...]
Ayotte’s Senate amendment opposes DOL/ESOP fiduciary proposal
“Senator Kelly Ayotte (R) of New Hampshire has proposed an amendment to S.782 that would amend ERISA to make clear that appraisers of private company ESOP stock are not ERISA fiduciaries,” reports The ESOP Association’s blog. For more information—including a sample letter to send your Senators and a link to the full text of the amendment— [...]
DOL proposal to pass ESOP valuation risk to business appraisers continues to generate discussion
Bill McIntyre (Ohio Employment Ownership Center) recently published “Valuators Should Not Be Fidiciaries” in the Ohio Employee Ownership Center’s Owners at Work magazine (Winter 2011). In addition to summarizing the statements and opinions that have been presented to the DOL, he offers a list of points about the proposed regulation. Join Jared Kaplan (Will McDermott [...]
Can you afford to stay in the ESOP valuation business?
As announced in the January, 2011 issue of BVUpdate, the Department of Labor seems committed to it’s proposed regulation defining ESOP appraisers as fiduciaries. This may drive many business valuation firms out of the ESOP business–or will it? On May 19 BVR welcomes attorney Jared Kaplan (McDermott Will & Emery LLP) for “The Appraiser’s Role in [...]
Can you afford to stay in the ESOP valuation business?
As announced in the January, 2011 issue of BVUpdate™, the Department of Labor seems committed to it’s proposed regulation defining ESOP appraisers as fiduciaries. This may drive many business valuation firms out of the ESOP business–or will it? On May 19 BVR welcomes attorney Jared Kaplan (McDermott Will & Emery LLP) for “The Appraiser’s Role [...]
DOL appears ready to go ahead with ERISA fiduciary requirement over objections of appraisal community
This just in from the ESOP Association : In a recent news article, Assistant Solicitor of DOL Ted Hauser said, “The Labor Department is set (emphasis added) with its position on valuation firms…” Thus, ESOP voices are not at this time having significant impact on altering the basic position proposed by DOL that all appraisers [...]
AICPA FVS Executive Committee submits comments to the DOL
The AICPA Forensic and Valuation Services Executive Committee (FVSEC) recently sent the DOL a comment letter opposing the Department’s proposal to change the definition of the term “fiduciary.” According to the FVSEC, “we believe the DOL should not change the definition of fiduciary, rather we believe the DOL should implement rules to ensure only qualified [...]
ESOP compliance: some new free resources from WMA
The following articles from the most recent issue of Willamette Management Insights (Winter 2011) are available on WMA’s website: “The ESOP Feasibility Study” by C. Ryan Stewart “Retained Shareholder/Executive Reasonableness of Compensation in the ESOP Sponsor Company” by Robert F. Reilly “Reconciling the Current Employer Stock Valuation with Prior Stock Valuations” by Malcolm (“Mike”) R. [...]
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