Speaking at a Feb. 7 ABA meeting in New Orleans, Phyllis Borzi, head of the DOL’s Employee Benefits Security Administration, described her agency’s new “Prohibited Persons Project” pilot program. The program will track "individuals in the service provider community" with a history of misconduct so plan sponsors are aware of their history, Bloomberg BNA reported. Borzi indicated that the pilot could be elevated to national status.
Borzi also touted EBSA’s 2013 enforcement numbers: $1.7 billion in civil enforcements and 320 criminal investigations resulting in 88 indictments.
Borzi also confirmed that the so-called “conflict of interest” (formerly known as the redefinition of fiduciary rulemaking) is EBSA’s most important regulatory priority, although she would not give an exact date of when the new rule will surface. The agency’s latest estimate is August 2014. The EBSA is working on an economic analysis which may reflect a better understanding of compensation rules, according to Borzi. Though not all forms of compensation will be grandfathered, Borzi indicated that there may be a series of PTEs that will address some of them.
