SEC Charges VALIC Financial Advisors With Deceptive Sales Practics
The firm was also charged with mutual fund share class violations.
The firm was also charged with mutual fund share class violations.
Defendants are accused of failing to leverage the size of the plan to negotiate for lower investment and recordkeeping fees, among other things.
The agreement also calls for the university to issue an RFP for recordkeeping services and engage an independent consultant to review investments, among other things.
The agency says it is postponing deadlines for certain time-sensitive actions required by these plans and others because of the COVID-19 emergency.
A federal judge noted that the pandemic will affect civil jury trials in the Southern District of New York “for a considerable and presently unknowable time to come.”
The agency says proper use of catch-up contributions will be an examination focus for 403(b) plans in fiscal year 2020.
The plaintiffs say there is additional evidence for their claims, “such as incorrect reporting on mandatory Department of Labor disclosures about the amount of administrative fees paid by [the] participants.”
More than a handful of university 403(b) cases have been settled.
The March 31 deadline for 403(b) plans has been extended to June 30; the April 30 deadlines for DB plans have been extended to July 31.
The bill introduced to Congress is designed to ensure public sector and nonprofit retirement plans have the same access to low-cost investments as for-profit retirement plans do.
403(b) plan sponsors need help understanding their fiduciary duties, reviewing plan investment lineups and benchmarking fees.
The university argues that other courts would have required more than an appellate court did in its lawsuit to state a plausible claim.
A magistrate judge found that there are genuine issues of material fact as to whether Columbia acted prudently throughout the class period by not consolidating to a single recordkeeper.
The lawsuit accused Allina Health System defendants of allowing one provider free-reign to add funds to Allina's 403(b) and 401(k) plans, and of failing to monitor investment service providers.
It is looking into whether agents are engaging in deceptive and unfair sales practices, such as failing to appropriately disclose product costs and merits.
Revenue Procedure 2019-39 sets forth a system of recurring remedial amendment periods for correcting form defects in 403(b) individually designed plans and 403(b) pre-approved plans occurring after the initial remedial amendment period ends on March 31, 2020.
“We’ve heard the need for these investment options in 403(b) plans from advisers, consultants and plan sponsors for decades,” says Bruce Corcoran, managing vice president/head of 403(b) Business at ICMA-RC.
Plan advisers can help 403(b) plan sponsors looking for downside protection, active strategies and target-date funds (TDFs) that can be used as a decumulation vehicle in retirement.
The denial of leave to file an amended complaint by a district court judge offers a brief lesson in Federal Rules of Civil Procedure.