Deals & People February 6, 2012

J.P. Morgan Asset Management Expands Strategy Group

J.P. Morgan Asset Management hired Roberts Grava as managing director in its Strategy Group. 
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The Strategy Group, one of the company’s primary centers for research, is focused on investment policy issues of greatest concern to corporate, public and Taft-Hartley plans, endowments, foundations, sovereign wealth funds, central banks and insurance companies.

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In his new role, Grava will be primarily focused on expanding the company’s strategic dialogue with large sovereign wealth fund and central bank clients, and producing in-depth proprietary research and customized investment solutions. 

Grava rejoins the company from The World Bank, where he most recently served as head of Quantitative Strategies, Risk and Analytics, which provided advisory services for more than 40 central bank, national pension fund and sovereign wealth fund clients, and middle office support for global fixed income and multi-asset investment portfolios.

Grava spent 2007 to 2010 at J.P. Morgan Asset Management as a senior client portfolio manager in Fixed Income, prior to which he served as principal financial officer for The World Bank’s Treasury department, and was instrumental in the growth and development of their Reserve Advisory and Management Program (RAMP). Grava spent 11 years at Latvijas Banka (Bank of Latvia), where he was a member of the bank’s board and Chief Investment Officer.  

   

 

Compliance February 6, 2012

Plan Advisers Must Understand Final 408(b)(2)

Now that the Department of Labor’s (DoL) regulation for 408(b)(2) has been finalized, it is important for plan advisers to understand how the final ruling impacts them.  
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“The majority of the changes that were made were to facilitate administration,” Bradford P. Campbell of Schiff Hardin LLP, formerly assistant secretary of labor for Employee Benefits and head of the Employee Benefits Security Administration (ERISA), told PLANADVISER. “They are generally positive changes. I also think that the department was wise to propose in a separate rule the summary disclosure.”

Campbell added, “I think one area where the change is kind of interesting is the way they [DoL] is asking plans to respond to failure to disclosure. They are almost commanding it now.”

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Roberta J. Ufford of the Groom Law Group told PLANADVISER the final rule has not changed much from the interim rule, but a couple of clarifications the DoL made are very helpful. One of the biggest clarifications is the additional information requirement. This new requirement asks for a description of the arrangement between the payer and the covered service provider who is receiving the compensations.

Ufford said there are a couple different ways plan advisers can prepare to be in regulation with the final 408(b)(2). She said plan advisers will have to look at their contractual materials, disclosures and their own arrangements to ensure they are complying with the rule

“A plan adviser, especially if the adviser generally assists the plan sponsor in reviewing other plan services, should be prepared to help their plan sponsor clients in implementing the new rules,” Ufford said. “The plan adviser will probably be expected to help their plan sponsor clients comply with these rules.” 

Campbell said the bulk of the final rule falls on the plan adviser. “They need to make sure they have their disclosure houses in order. I think most service providers are going to be able to comply with the July 1 deadline, because most of the changes are relatively minor.”

Campbell concluded, “I’m glad to see this regulation concluded. I initially proposed this regulation back in 2007. I think in general, the regulation looks a lot like where we were at the end of the Bush Administration. I think most folks are comfortable with the actual content of these disclosures. I think it is a big achievement. I think the department did an overall good job.”

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