News, Vision & Voice for the Advisory Community


Erring 401(k) plan advisors seek do-overs from DOL to ward off potentially crippling fines

A proposal from leading ERISA attorneys would let RIAs say mea culpa on misinterpretations and technical fouls in the wake of new fee disclosure rules

Author Lisa Shidler October 22, 2012 at 3:02 AM
no description available
Fred Reish: The object isn’t to punish people who really wanted to do the right thing.

Joe Gordon

Joe Gordon

October 22, 2012 — 6:27 PM

What am I missing? Did these RIA’s not have written service agreements with each client? Did the agreement not spell out the fees, the fact they are a fiduciary, and the services for which they charge the fees?
What are examples of the specific omissions or mistakes?

Lisa Shidler

Lisa Shidler

October 24, 2012 — 4:57 PM

Hey Joe, As you see in the story, there are number of potential concerns. In some cases, the attorneys are worried that RIAs may get hit for not interpreting the disclosures in the same way as the DOL. For instance, what if an RIA includes a statement that says fees can range from 0 to 8%. ERISA attorney Fred Reish says many people wrote their documents this way, but it’s possible the DOL could say that’s not good enough because it’s too wide of a range.

Mentioned in this article:

Sheridan Road Financial
Consulting Firm
Top Executive: Jim O'Shaughnessy

Pension Resource Institute, LLC
Compliance Expert
Top Executive: Jason C. Roberts

Retirement Law Group, PC

Top Executive: Jason C. Roberts

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING

RIABiz Directory sponsored by:

Directory Sponsor Logo