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Don’t Be Afraid, Be Ready

A DOL investigation can be time consuming, expensive and potentially damaging to your reputation if the DOL concludes that you have violated an ERISA requirement. But it doesn’t have to be about fear at all, notes David N. Levine, a principal with the Groom Law Group, Chartered, in Washington, DC. You just need to be prepared.

In his “Inside the Law” column in the Spring issue of NAPA Net the Magazine, Levine answers the three most important questions that his advisor clients ask when preparing for and working through a DOL investigation:

Why does the DOL care about advisors? Among other things, Levine notes, looking at an advisor can enable the DOL to “touch” all of the advisor’s plans more easily than looking at them individually.
What can I do to prepare? Levine recommends planning for investigation costs (e.g., fiduciary liability insurance), creating internal quality controls, and conducting an internal review.
What should I do if the DOL comes knocking? Common best practices include having proper legal counsel, maintaining a professional relationship with the DOL investigator, being responsive to investigators’ requests, and having a plan for communicating with the DOL.

To access a pdf of Levine’s Spring 2014 “Inside the Law” column (as well as his past columns), click here; a pdf of the entire 60-page Spring issue of NAPA Net the Magazine is here.

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