Compliance November 28, 2011

DoL Sues Defunct Company for Failing to Terminate 401(k)

The U.S. Department of Labor is suing Worldwide Trade Resources Inc. (WTR) for failing to distribute $2 million held in its 401(k) plan. 
Reported by

According to The Jersey Journal, WTR is being sued for “for failing to administer and terminate the defunct company’s 401(k) plan, in violation of the Employee Retirement Income Security Act,” the lawsuit says.  The suit alleges that WTR ceased operations on or around October 2010, and did not distribute any of participants’ 401(k) accounts.  

The news report said as of January 31, the plan had 52 participants and assets totaling $2.2 million, according to the latest data available.  

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The suit seeks a court order appointing an independent fiduciary to distribute the plan’s assets and terminate it.  

Deals & People November 28, 2011

BNY Mellon Expands Operations in Australia

Pershing, a BNY Mellon company, has increased its presence in Australia by acquiring Penson Worldwide's Australian operations.
Reported by

As a result of this deal, Pershing will have a significantly larger footprint in Australia, the world’s 14th largest economy and the eighth largest equity market, and will have strong prospects for growth in the advisory and retirement spaces, according to BNY Mellon.

“Australia is strategically important to BNY Mellon in Asia-Pacific, both to continue our local franchise growth and to support our clients’ objectives,” said Steve Lackey, chairman of Asia-Pacific, BNY Mellon. “The acquisition of PFSA adds new capabilities for our institutional clients and reflects our continuing investment in the region.”

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BNY Mellon has been active in Australia for more than 35 years, delivering a variety of asset management, payment, trustee, depositary receipt, clearing and global custody services to Australian banks, institutional investors, listed corporations and broker/dealers. The company has offices in Sydney, Rosebery NSW and Melbourne.

In addition to providing clearing services in Australia, PFSA holds an Australian Financial Services License, is a market participant of the Australian Stock Exchange and a clearing participant of the Australian Clearing House.

The Penson Worldwide group of companies provides execution, clearing, custody, settlement and technology infrastructure products and services to financial services firms and others servicing the global financial services industry. The Penson Worldwide group of companies includes Penson Financial Services, Inc., Penson Financial Services Canada Inc., Nexa Technologies, Inc., Penson Financial Services, Ltd., Penson Asia Limited, and Penson Financial Services Australia Pty Ltd, among other companies. It is headquartered in Dallas, Texas.

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