DOL takes up probe of pension consultants
The US Department of Labor is nowinvestigating pension consultants following an earlier probe by theSecurities and Exchange Commission.
The department’s Employee Benefits Security Administration’senforcement officials “are currently reviewing the documents [providedby the SEC] to determine what DOL investigative action may benecessary,” said DOL assistant secretary Ann Combs in a letter tosenators.
“Based on this review, several matters have been referred to EBSA regional offices for investigation.”
She added: “Please be aware that we are also reviewing existing DOLregulations relating to the disclosure of fees, including revenuesharing arrangements, by service providers to employee benefit plans.”
The disclosure follows the Securities and ExchangeCommission, which in May last year said it was investigating firmsabout possible conflicts of interest.
Combs said plan fiduciaries “need to be able to assess whetherrevenue sharing arrangements might affect the recommendations providedby a service provider such as a pension consultant”.