1. Laura Ann Bartlett, CEBS, AIFA Vice President, Institutional Wealth
Your Tribe’s Retirement Plan: The DOL’s Fiduciary and Conflict of Interest Rule
Laura Ann Bartlett, CEBS, AIFA
Vice President, Institutional Wealth

2. Important Disclosure
This presentation is not intended to serve as a comprehensive review of the Definition of Investment Advice under the Fiduciary and Conflict of Interest Rule. Please consult the documents and materials published in the Federal Register by the Department of Labor relating to these matters.
The opinions expressed herein reflect the judgment of the author at this date and are subject to change without notice and are not a complete analysis of any sector, industry or security. The content in this
document is for informational and educational purposes only and does not constitute legal, tax or investment advice. Always consult with a qualified financial professional, accountant or lawyer for legal, tax and
investment advice.
Investments and insurance are not insured by the FDIC; are not deposits or other obligations of, and are not guaranteed by, any bank or bank affiliate. All investments are subject to risks, including possible loss
of principal.
© Bank of Arizona, a division of BOKF, NA. Member FDIC. Equal Housing Lender. The Private Bank at Bank of Albuquerque provides products and services through BOKF, NA and its various affiliates
and subsidiaries

3. Today’s agenda
Who is a retirement plan fiduciary and how has the definition changed?
What does it mean to be a fiduciary under the new rule?
Why should you be concerned about the new rule?
Practical steps you can take to minimize liability
How BOK Financial can help

4. Who is a retirement plan fiduciary ?
Any person or entity named in plan document
Any person or entity who has authority and control over management of a retirement plan or its assets
Any person or entity who offers investment advice with respect to plan assets, for a fee
The fiduciary standard applies to plans governed by ERISA
Commercial enterprise plans
For other plans, operating at a fiduciary standard is a strongly advised best practice

5. A fiduciary must:
Act solely in the interest of plan participants and their beneficiaries and with the exclusive purpose of providing benefits to them
Carry out duties prudently
Follow plan documents (unless inconsistent with ERISA)
Provide diversified plan investment options
Monitor plan expenses

6. Key Best Practices for Fiduciaries: Manage Your Risks
Create and properly structure an investment committee
Ensure operational, legal, and regulatory compliance
Review and benchmark plan investments and fees
Prudently select, appoint, and monitor service providers
Measure participant outcomes and investment allocations

7. Be aware! Fiduciary standard is the highest standard in law
You are held personally responsible and liable for decisions that you make as a fiduciary
Examples of fiduciary legal activity
Inadequate/misleading disclosures
Excessive fees
Fidelity, MassMutual, Putnam, and other service providers
Charged with excessive fees, self-dealing, and conflicts of interest

8. Know Who Fills Key Roles in Your Plan
Trustee
Recordkeeper
Investment advisor
Auditor
Custodian
Investment provider
“Do you have written agreements with each provider and do you know what they charge?”

9. Key Best Practices: Limit Your Liability
Document the processes used to carry out fiduciary responsibilities
Form administrative/investment plan committee
Hold regular meetings and retain minutes of meetings
Give participants control over the investments in their accounts
Ensure compliance with 404(c) and QDIA provisions, if applicable
Hire a service provider to handle fiduciary functions
Structure agreement so that the person or entity assumes liability for those functions selected

10. DOL Fiduciary & Conflict of Interest Rule
Published into Federal Register on April 8, 2016
Goes into effective today!
Applies to:
Qualified Retirement Plans subject to ERISA
IRAs
Health Savings Accounts
Coverdell Education Accounts
Participants and beneficiaries in these plans
Re-defines who is a fiduciary and what constitutes fiduciary advice
Expands the situations and activities that will give rise to fiduciary advice
More advisers and activities will be subject to a fiduciary standard
Broad impact on investment fees, advisor compensation, and investment offerings

11. How does the law apply to “non-ERISA” plans?
Plans subject to Title I of ERISA are covered by the new rule:
403(b) plans of public educational institutions
403(b) plans operated by private sector employers
403(b) plans operated by tax exempt employers
Plans not subject to Title I of ERISA are not covered:
Church plans – those that are covered by the steeple
Governmental 401(k) plans
Governmental 457 plans
However, following a fiduciary standard is a widely agreed upon industry best practice for a plans

12. Who is an investment fiduciary under the new rule?
Anyone who delivers “investment advice,” for a fee, including:
Recommendations on acquiring, holding, disposing or exchanging securities or other investment property, including annuities/insurance
Recommendations on management of securities/other property
Recommendations on selection of other persons to provide investment advice
Recommendations on distributions from a retirement plan or an IRA
Recommendations regarding rolling assets from plan to IRA, IRA to IRA, or plan to plan and how those assets are invested after they are rolled over
ERISA’s five-part test for defining investment advice has been eliminated

13. What other activities are now fiduciary activities?
Providing recommendations, such as:
Communications and conversations not previously considered advice
Recommendations regarding the type of investment structure (brokerage vs. advisory)
Any investment recommendation made to an individual IRA holder, plan participant, or their beneficiary
All manner of recommendations related to rollovers
Even a “sit tight for now” message would be advice
“A communication that based on its content, context, and presentation would reasonably
be viewed as a suggestion that the advice recipient engage in or refrain from taking a certain course of action.”

14. Requirements of an ERISA Investment Fiduciary
Discharge the following duties solely in best interest of participants and beneficiaries:
Duty of loyalty
Duty of prudence
Duty to diversify investments
Duty to follow the plan (as long as it complies with ERISA)
Self-dealing is absolutely prohibited – cannot accept a payment that creates a conflict of interest, unless there is an exemption
Fees must be reasonable and “level” – compensation cannot vary based on recommendations made, unless there is an exemption

15. Why plan sponsors should be aware?
Some advisors do not serve as fiduciaries today
Broker-dealer firms operate under a suitability standard
Investments must be suitable
Compensation often varies based on recommendations
Variable compensation may continue, but only under Best Interest Contract (BIC) exemption
Additional contracts and disclosures will be required
Procedural changes are likely
Service providers are unlikely to provide investment fund lineups, unless they are engaged for a fee and acting as a fiduciary

16. Why should plan sponsors be aware?
Many more communications will be considered advice
Individually tailored discussions with a specific recipient
Is the employee a tribal employee or a commercial enterprise employee?
Suggestions to act ....or not act
Providing a selective list of securities
Even if no recommendation is made
Discussions with participants will focus more on educating
If plan sponsor and/or participant desire specific recommendations, the service provider or adviser must act in a fiduciary capacity

17. Why should plan sponsors be aware?
Service providers are unlikely to name specific funds in asset allocation models, or give specific fund names to participants
Assistance with assembling fund line-ups must be based on objective financial data and independent benchmarks
Recommendations provided via participant services group or website may be more vague and less tailored to the individual:
Less ability to assist with retirement decisions
Less ability to assist with asset allocation decisions
Provider’s proprietary funds will need to comply with the rule and related exemptions. A specific exemption exists to permit proprietary investments.
Investment Education provision will apply to participant education services
Less handholding will be available to your participants!

18. Why should plan sponsors be aware?
The DOL believes that Advisers should act as Fiduciaries
Institutions and advisers who already hold themselves to a fiduciary standard have significant advantages
Compliance structure in place
Processes and procedures exist to support fiduciary standard
Have made the needed investments in people and systems
Limitations will be placed on advisers and institutions that do not act in a fiduciary capacity
Will only offer education and tools
Other limitations may emerge in their service model
Ask if your provider and your adviser are prepared to act in a fiduciary capacity!

19. What new services may your provider decide to offer?
Managed accounts within retirement plans (and IRAs)
“Robo” advice or other computer driven models
Greater desire to serve terminated participants within your plan (in lieu of encouraging a rollover)
Rollover tools to aid advisers in determining if the rollover is in the participant's best interest
Expanded fee-based financial planning services
3(21) or 3(38) fiduciary investment advisory services

20. BOKF Can Assist with Consulting
We offer both 3(21) and 3(38) Investment Fiduciary Services
3(21) Advisor is directed and serves as co-fiduciary
Your committee makes final decision regarding investment funds
Based on the investment analysis that we provide you
3(38) Advisor has full discretion to act on behalf of your committee
We make and implement the final decisions on investment funds
Then advise you of our decisions and the basis on which we made them
We accept full fiduciary responsibility for the investments
You retain the fiduciary duty to monitor a fiduciary advisor
Ensure that fees are reasonable for services rendered
Ensure prudence of the advisor and their process

21. BOKF Can Provide a Product Solution
BOK Fiduciary Solution - bundled, single source, 3(38) Fiduciary Advisor and Plan Service Provider Product
We serve as:
Trustee and custodian
Plan recordkeeper, compliance, and administration
Investment provider
Participant educator
Full fiduciary investment advisor
We provide:
Guidance on plan design and best practices
Simplification of plan administration
Extremely competitive fees
Comprehensive, diversified fund line-up

22. BOK Financial supports many Tribes and Pueblos with these services
We can assist in making sure your plans are established properly to limit risk to your tribe
We can educate you and the rest of your leaders on these new rules and how they apply to Tribes and Pueblo
We operate at a fiduciary standard at all times, to ensure that our clients receive advice that is conflict-free
We help educate your plan participants with fiduciary-level advice
Our client service offices are located in New Mexico and Arizona

23. In Conclusion
Impact of this new rule is both deep and broad across financial services industry
DOL has expanded its regulatory reach considerably
Specific changes will vary by service providers, broker-dealer firms, business models, etc.
Prudent plan sponsors should be educated and prepared to ask appropriate questions of their service providers
More plan sponsors will choose to hire a service provider that can serve in a fiduciary capacity
Be sure that you document the prudent execution of your own duties as a fiduciary at all times

24. Beware the Law of Unintended Consequences!
Feel free to call on us for assistance at any time!

25. Thank you for your interest!
Questions?
Laura Ann Bartlett, CEBS, AIFA