Advisors are now clearly in the crosshairs of Employee Benefit Security Administration (EBSA) enforcement personnel, according to the Groom Law Group.
A recent article by the Washington, DC-based law firm highlights the increased activity, as well as the areas of focus. Groom’s David Kaleda writes that while most advisor compliance departments are familiar with SEC and FINRA exams, many may not be familiar with EBSA exams. In fact, he says that some may be surprised to find they fall under EBSA’s jurisdiction.
Areas of focus include:
- Compensation practices
- Use of proprietary products
- CITs
- Trading errors
In addition, the SEC and the DOL are starting to cooperate on investigations — sharing information, conducting joint enforcements and cross-training. The reality of the new world is hitting advisors focused on DC plans. The DOL is taking on a greater role in protecting ERISA plan participants — and forcing some compliance departments to get real smart, real fast on retirement matters.
