Los Angeles partner Fred Reish was quoted in Reuters on the issue of the U.S. Department of Labor’s stepping up of scrutiny of broker-dealers who have retirement plan customers. The department is looking for potential conflicts of interest and prohibited transactions regarding how the broker-dealers are paid.
Fred, a partner in the firm's Employee Benefits & Executive Compensation Practice Group and Chair of the Financial Services ERISA Team, said that least eight broker-dealers, in recent months, received requests for an "enormous" amount of paperwork about their dealings with retirement plan clients.
He continued, “"I don't think this is a random investigation … My suspicion is that people have reported some practices they have seen the broker-dealers do and (the department) is worried they are providing individualized advice and not acknowledging it."
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