Compliance July 10, 2024

House Committee Advances Bill to Vacate Retirement Security Rule

The vote passed the House Education and Workforce Committee, but no vote has yet been scheduled for the full House.

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The U.S. House of Representatives’ Education and Workforce Committee voted 23 to 18 on Wednesday to pass a Congressional Review Act resolution to overturn the Department of Labor’s Retirement Security Rule. The bill is sponsored by Representatives Rick Allen, R-Georgia, and Education and the Workforce Committee Chair Virginia Foxx, R-North Carolina.

The Retirement Security Rule, often called the fiduciary rule, was finalized by the DOL in April and scheduled to take effect September 23. It would extend fiduciary duties under the Employee Retirement Income Security Act to one-time recommendations to retirement investors. This would include recommendations historically not covered, such as rollovers, annuity sales and investment menu sales.

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If the legislation were to become law, it would nullify the DOL’s rule. A companion bill in the Senate is co-sponsored by Senator Joe Manchin, I-West Virginia, which could give the legislation a probability of passing the Senate, since Republicans widely oppose the Retirement Security Rule. However, it is all but certain to be vetoed by President Joe Biden.

A vote has not yet been scheduled for the full House of Representatives, nor has any vote been scheduled in the Senate.

Separately, the House Appropriations Committee voted 31 to 25 on Wednesday to advance an appropriations bill that would prevent the DOL from using funds to implement the Retirement Security Rule. The proposed budget also contains sharp cuts to the Employee Benefits Security Administration and the Occupational Safety and Health Administration.

The DOL is also currently facing two lawsuits in federal courts challenging the rule, including one filed by several insurance trade groups. The life insurance and asset management industries, by and large, have been staunch opponents of the rule.
Uncategorized July 10, 2024

Pensionmark is Now World Investment Advisors

The rebrand of the retirement plan and wealth advisory division is meant to strengthen alignment with parent company World Insurance Associates.

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Pensionmark Financial Group, a retirement plan and financial advisory firm and division of World Insurance Associates LLC, announced Wednesday that it has rebranded to World Investment Advisors LLC.

The name enhances alignment with the parent company and better represents the firm’s holistic financial services platform for independent financial advisers, according to a statement from the company.

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World acquired Pensionmark in March 2022, with the division currently employing 392 certified financial advisers overseeing $55 billion in assets under advisement between its wealth management and institutional segments. The wealth management division has increased its assets under management to $11.5 billion from $1 billion during the past two years.

Troy Hammond, CEO of World Investment Advisors, says the firm has been deliberately building itself into a full-service wealth management enterprise focused on serving fee-based advisers. Additionally, after several key acquisitions and recent improvements to platform capabilities, the firm was ready for a brand that reflected its evolution, he says.

“Our advisers also benefit from the firm’s expertise in retirement plans, risk management and insurance solutions and from the significant, scalable and innovative resources made available through the fast-growing, well-resourced World organization,” Hammond says. “Rebranding to World Investment Advisors announces our value proposition to the marketplace.”

While World Investment Advisors will conduct all future business under the new name, the company’s leadership, employees, office locations and legal documentation will stay the same.

In 2023, World Insurance Associates LLC received a $1 billion capital infusion from the Goldman Sachs Group Inc.’s asset management division. Goldman Sachs Asset Management, through its private equity and hybrid capital teams, joined Charlesbank Capital Partners as co-lead investors to fuel growth plans for the insurance brokerage aggregator, including acquisitions.

“Since making our investment last year, we have been impressed with the accelerated growth of World’s wealth management capabilities, which further enhance the multi-faceted set of client offerings across World’s integrated platform,” said Anthony Arnold, managing director in private equity at Goldman Sachs Asset Management.

“Pensionmark established itself as an industry leader by consistently delivering exceptional client service to its retirement and wealth advisory clients,” said David Katz, managing director at Charlesbank Capital Partners, in a statement. “Now, under the World brand, the business is well positioned to further enhance its reputation and capabilities.”

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