Legislative and Judicial Actions
Provider Recommendations
PANC 2021: Investigation Lessons Learned From Experience
Revenue Sharing Disclosure Failures Result in SEC Action
A recent cease-and-desist order filed by the Securities and Exchange Commission underscores the fact that revenue sharing among financial advisers and ‘parties in interest’ is not necessarily an inherent problem—but a failure to disclose the relationship and the potential for conflict is.
SEC Sanctions Offer New Cybersecurity Guideposts
Oshkosh ERISA Challenge Squashed by District Court
Allegations that the company inappropriately favored actively managed funds over passive investment options for its retirement plan have fallen short upon preliminary review in federal court.
Order Sanctions Fiduciary Who Diverted Millions From Clients
A DOL investigation and legal pursuit that have spanned the better part of two decades have drawn to a close, resulting in a $42 million judgment against the former attorney and affiliated companies.
Consumer Protection Motivates Barbara Roper’s Move to SEC
SEC Chair Gary Gensler says her focus as a senior adviser will be on issues relating to retail investor protection, including broker and adviser oversight and examinations.
Now a Fiduciary
Legislative and Judicial Actions
Juniper Networks Is Latest ERISA Lawsuit Target
The claims included in the complaint, which in some respects directly contradict arguments made by other plaintiffs in related fiduciary breach cases, underscore just how many potential avenues for scrutiny plan sponsors face.
SeaWorld ERISA Lawsuit Seeks Sizable Damages
The text of the lawsuit notes the fast pace of the filing of excessive fee lawsuits against retirement plans operated by major U.S. employers, arguing SeaWorld owes its own employees more than $50 million in damages.
ESG and Shareholder Rights Rule Under White House Review
The language of the regulation has not yet emerged, but the title published by the Department of Labor suggests it will address both ESG and proxy voting matters.
An ESG Refresher as DOL Makes Progress on New Regs
Industry experts are watching for the imminent filing of new Department of Labor regulations pertaining to the use of environmental, social and governance themed portfolios by tax-advantaged retirement plan investors.
ERISA Ruling in 5th Circuit Supports American Airlines Defendants
The appeals court has technically affirmed, vacated and reversed parts of a district court ruling that granted summary judgement against the plaintiffs; while this sounds like a mixed outcome, the appellate ruling benefits the defense.
Schwab Faces Failure-To-Monitor Scrutiny in Massachusetts
The firm is accused of failing to take sufficient steps to monitor customer accounts for further payments to a former adviser—himself accused of substantial wrongdoing—whose registration last lapsed in 2014.
Judge Stays Land O’Lakes Lawsuit for Mediation
The Land O’Lakes defendants’ motion to dismiss the suit based on a lack of subject matter jurisdiction and failure to state a plausible claim succeeded only in part, setting the stage for either a full trial or mediation and settlement.
Hidden Commissions, Fraud Alleged in New Fiduciary Breach Lawsuit
Plaintiffs in a lawsuit filed in Tennessee say their adviser never disclosed that he received a commission on the sale of certain life insurance products and allegedly made substantial misrepresentations about how client dollars were being used.
A DOL Fiduciary Rule and PTE Refresher
No matter if an adviser is a flat-fee registered investment adviser or a commission-based broker/dealer, the DOL says the collection of compensation related to rollover guidance is almost always going to be a prohibited transaction, triggering the need for an exemption.
Midsize Plan Claims Self-Dealing by Russell Investments
The same attorney that is representing employees of Caesars Entertainment in a self-dealing lawsuit filed in May against Russell Investments has signed onto a similar case put forward by participants in Royal Caribbean Cruises’ retirement plan.