So far, reporting seems to suggest that the numerous fraudulent comments submitted to DOL regarding the fiduciary rule were done so mainly with stolen or outright fake identities of individuals, rather than, say, those of employers or financial services providers.
Following news of Preston Rutledge’s approval by the full Senate to head the Employee Benefits Security Administration, several retirement industry advocacy groups voiced their support in short statements.
In addition to being barred as serving as a fiduciary for five years, the fund manager is ordered to make more than $45,000 in restitution to the plan, according to a Department of Labor news release.
Preston Rutledge seems to be enjoying relatively little opposition as he moves closer to becoming the Assistant Secretary of Labor for the Employee Benefits Security Administration—a key position in the federal government tasked with enforcing ERISA.
The future head of EBSA would play a substantial role in the fate of the fiduciary rule.
The Annual Funding Notice requirements implemented by the Pension Protection Act have been somewhat helpful but could be significantly improved, according to the American Academy of Actuaries.
At various times between 2006 and 2009, according to EBSA findings, the plan was 100% invested in stock warrants.
EBSA says investors’ dollars, including ERISA-covered assets, were diverted to pay for home renovations, personal credit card payments and mortgage payments.
The plan sponsor was criminally prosecuted and pled guilty to embezzlement in June 2016; she was ordered by EBSA to make restitution to restore losses to the plan.
Andrew Acosta’s appointment as Secretary of Labor was more or less a non-event from the perspective of the wider media and the general political conversation—but it is an important development for the retirement plan industry.