Statutory Guidelines [Appendix A(5) Tres. Regs 1.46B and 1.46B-1 to B-5] regarding designated settlement funds and qualified settlement funds.
Connecticut Designated Settlement Funds Treasury Regulations 1.468 and 1.468B.1 through 1.468B.5 are sets of regulations established by the U.S. Department of the Treasury to provide guidance for the establishment, operation, and governance of designated settlement funds (DSS) in the state of Connecticut. DSS are commonly used in legal settlements, especially in the context of class action lawsuits, where they serve as a mechanism for the payment and administration of settlement funds. These regulations help ensure that settlement funds are properly managed, distributed, and protected, with the objective of protecting the interests of the parties involved and promoting transparency and fairness. The key components and provisions of Connecticut Designated Settlement Funds Treasury Regulations are as follows: 1.468: This section contains general provisions and outlines the purpose and applicability of the regulations. It covers the establishment and use of DSS in Connecticut and provides guidelines for their administration, distribution, and termination. 1.468B.1: This subsection defines the terms used throughout the regulations, ensuring clarity and consistent interpretation. 1.468B.2: This subsection specifies the requirements for establishing and maintaining a DSF. It covers essential elements such as the creation of a trust, the appointment of trustees, and the responsibility of the trustee to act in the best interests of the beneficiaries. 1.468B.3: This subsection elaborates on the investment and management of DSF assets. It provides guidance on prudent investment practices, the use of qualified investment professionals, and the reporting requirements related to the financial performance of the DSF. 1.468B.4: This subsection focuses on the distribution of settlement funds to the beneficiaries, including the timing and process of payments. It ensures that funds are distributed fairly and efficiently, considering the needs and rights of the settled parties. 1.468B.5: This subsection deals with the termination and dissolution of a DSF. It outlines the conditions and procedures for closing a DSF, including the distribution of any remaining assets and the discharge of the trustees' responsibilities. While these regulations primarily serve as guidance for establishing and managing DSS in Connecticut, it is important to note that similar regulations may exist in other states with variations in specific provisions or numbering. It is crucial for legal practitioners and parties involved in settlement agreements to review the relevant jurisdiction-specific regulations to ensure compliance and proper operation of DSS.
