Legal News

USI Advisors Fined by Labor Department
Download PDF

USI Advisors, from Connecticut, has been fined by the U.S. Department of Labor for a failure to disclose fees it was paid for 13 pension plans that it monitors. The fine is for $1.27 million and the firm agreed to pay the fine related to the 13 plans that it oversaw from 2004 to 2010.

The firm is a subsidiary of USI Consulting Group and is required by Labor Department rules to disclose any fees it is paid. The disclosure must be submitted to the firm’s clients.

  
What
Where


“If you, as an investment adviser, are a fiduciary under ERISA with respect to plan investments in mutual funds, you cannot use your fiduciary authority to receive an additional fee or to receive compensation from third parties for your own personal account in transactions involving plan assets,” said Phyllis C. Borzi. Borzi is the assistant secretary of labor for employee benefits security.

The Labor Department began requiring advisers to disclose to employer clients all of the fees that they receive in the early days of July. Then, as of August 30, advisers also had to begin disclosing those fees to the participants in those retirement plans. The Boston office of the Labor Department is the office that fined USI. The new rules from the Labor Department could help prevent firms from being fined in the future.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




 

Most Popular

Legal Career Resources

August 23, 2016 Relocation is the Best Option for Attorneys Looking to Move Up

Summary: Attorneys looking for a new job will have better luck relocating to a completely new market. Learn why in this article. Read Why Every Attorney Should Look at Multiple Legal Markets When Doing a Job Search to learn more. […]

read more

SEARCH IN ARCHIVE

To Top