As of February 1, 2022, the U.S. Department of Labor (“DoL”) will begin enforcing PTE 2020-02, a fiduciary advice prohibited transaction exemption that applies to IRA rollovers. Previously, the DoL had issued a temporary enforcement policy in Field Assistance Bulletin 2018-02 indicating that the DoL would not pursue enforcement claims related to prohibited transaction claims so long as an investment adviser could demonstrate that it was complying with the Impartial Conduct Standards “in good faith and with reasonable diligence.” The temporary enforcement policy ended on January 31, 2022.
SEC Proposes Ban of Political Contributions by Registered Investment Advisers Seeking to Manage Public Pensions
July 24, 2009
Earlier this week, the U.S. Securities and Exchange Commission (“SEC”) proposed a new rule prohibiting “pay to play” practices by SEC registered investment advisers seeking to manage money for state and local governments. The SEC explained that “[t]he measures are designed to prevent an [investment] adviser from making political contributions or hidden payments to influence their selection by government officials.” The proposed SEC rule prohibit three primary activities by a federally registered investment adviser seeking to manage public funds: (1) political contributions (2) solicitation of political contributions and (3) use of a third-party to solicit the government.
Although the recent report concerning possible insider trading by a public pension plan administrator conducted by the Division of Enforcement of the U.S. Securities and Exchange Commission (“SEC”) involves an essentially unregulated money manager which is not subject to the Investment Advisers Act of 1940, it still offers an excellent opportunity for each registered investment adviser to review its policies and procedures regarding trading activity based upon material, non-public (“insider”) information.
May 20, 2005
With the SEC’s recent focus upon pension consulting, it’s incumbent upon the chief compliance officers of investment advisors to review again whether their firms are properly disclosing the conflicts of interest that may exist with their pension consulting services and then supervising, mitigating and/or eliminating such conflicts.
SEC Warns Investment Advisors That Conflicts Related to Pension Consultants Need to Disclosed & Mitigated
May 17, 2005
Does your investment advisory firm serve as a pension consultant? If so, then you need to carefully review the Staff Report Concerning Examinations of Select Pension Consultants released by the SEC on Monday, May 16, 2005.