Second Circuit Whittles Fiduciary Definition In Affirming Morgan Stanley Stock-Drop Win

Morgan Stanley & Co. and related parties weren’t acting as fiduciaries when they decided to fund the company’s retirement plans with employer stock rather than cash, the U.S. Court of Appeals for the Second Circuit held May 29 (Coulter v. Morgan Stanley & Co. Inc., 2d Cir., 13-2504-cv(L), 5/29/14).

In a per curiam opinion, the court found that this decision with respect to funding was a “settlor” function that didn’t give rise to fiduciary status under the Employee Retirement Income Security Act.

The court’s opinion affirmed a 2013 ruling of the U.S. District Court for the Southern ...