Top News

DOL proposes 18-month delay of fiduciary rule’s full implementation

Jessica Karmasek Sep. 1, 2017, 1:59pm

In June, the U.S. Department of Labor published a Request for Information, or RFI, related to the rule and whether to delay its full implementation. The rule, released in April 2016, mandates financial professionals who service individual retirement accounts, including IRAs and 401(k) plans, to serve the “best interest” of the savers and disclose conflicts of interest.

Labor Department seeks to fill vacancies on its pension benefits advisory council

Mark Iandolo Aug. 28, 2017, 3:26pm

WASHINGTON (Legal Newsline) — The U.S. Department of Labor (DOL) announced Aug. 18 that its Employee Benefits Security Administration (EBSA) is soliciting nominations to fill five three-year vacancies on the Advisory Council on Employee Welfare and Pension Benefit Plans, also known as the ERISA Advisory Council. The DOL noted that Aug. 31 is the deadline for nominations.

Labor Department secures $5 million for ESOP members of Manhattan laser surgery center

Mark Iandolo Aug. 23, 2017, 9:18am

NEW YORK (Legal Newsline) — The U.S. Department of Labor announced Aug. 16 that the owner of a Manhattan laser surgery center will pay $5 million to its employee stock ownership plan (ESOP) after allegations of violating the Employee Retirement Income Security Act of 1974 (ERISA) by creating false company valuations.

Survey: DOL’s fiduciary rule already hurting savers, financial professionals

Jessica Karmasek Aug. 18, 2017, 1:34pm

The Financial Services Roundtable, an advocacy organization for the nation’s financial services industry, polled 600 financial advisers from July 7-12.

DOL moves to rescind its persuader rule, citing ‘concerns’ raised by courts and need to review

Jessica Karmasek Aug. 17, 2017, 10:45am

The U.S. Department of Labor’s Office of Labor-Management Standards published its notice in June, explaining it intends to rescind the rule, first published by the DOL in March 2016. The rule, or Persuader Advice Exemption Rule, effectively eliminates the “advice exemption” under the Labor Management Reporting and Disclosure Act.

Nevada strengthens law governing financial planners

Jessica Karmasek Aug. 15, 2017, 1:15pm

The revised state law, which became effective July 1, essentially requires investment advisers and stock brokers now to abide by the same fiduciary standards as others in the financial industry.

DOL looks to delay fiduciary rule until 2019

Jessica Karmasek Aug. 14, 2017, 5:10pm

The U.S. Department of Labor and its new secretary, R. Alexander Acosta, last week notified a Minnesota federal court that it submitted to the Office of Management and Budget, or OMB, proposed amendments to three exemptions. The proposed amendments include an “extension of transition period and delay of applicability dates” from Jan. 1, 2018 to July 1, 2019.

MagnaCare to return $14.5 million to ERISA-covered health plans after alleged violations

Mark Iandolo Jul. 31, 2017, 2:39pm

NEW YORK (Legal Newsline) — The U.S. Department of Labor (DOL) announced July 25 that MagnaCare LLC will return at least $14.5 million to health benefit plans covered by the Employee Retirement Income Security Act (ERISA) after allegations of ERISA violations.

DOL files brief in challenge to Obama overtime rule

Glenn Minnis Jul. 12, 2017, 12:06pm

NEW ORLEANS (Legal Newsline) – The U.S. Department of Labor has filed notice with U.S. Court of Appeals for the Fifth Circuit, asserting that the government has presently “decided not to advocate” for a specific salary level in its ongoing dispute with states over what workers should be eligible for overtime pay.

Labor Department alleges Florida business guilty of profit-sharing plan embezzlement

Mark Iandolo Jun. 29, 2017, 3:36pm

JACKSONVILLE, Fla. (Legal Newsline) — The U.S. Department of Labor announced June 19 that the Secretary of Labor has filed a complaint against Andrea Lynn McCarthy, Lisa Hall, Truss Systems LLC and Truss Systems LLC Profit Sharing Plan.

Labor Department joins Pension Benefit Guaranty to recover $1.5 million for 2 participants

Mark Iandolo Jun. 5, 2017, 9:25am

CHICAGO (Legal Newsline) — The U.S. Department of Labor (DOL) announced May 25 that the partnership between its Employee Benefits Security Administration and the Pension Benefit Guaranty Corporation has recovered close to $1.5 million for participants in two terminated Chicago-based pension plans.

Law prof: Trump's lawless behavior with fiduciary rule undermines process

Jessica Karmasek May 18, 2017, 11:48am

Mercer Bullard, a University of Mississippi law professor and founder of Fund Democracy, a group that advocates for mutual fund shareholders, is puzzled by the U.S. Department of Labor’s 60-day delay, arguing the rule had one of the most thorough vettings.

Trump's decision to delay fiduciary rule might improve final version

Jessica Karmasek May 16, 2017, 9:43am

Uday Singh, a partner in the financial institutions practice of A.T. Kearney, a global strategy and management consulting firm, argues the 60-day holdup already has proven somewhat beneficial, in that new information has emerged.

Despite delay, fiduciary rule 'already causing great harm'

Jessica Karmasek May 12, 2017, 9:18am

Last month, the U.S. Department of Labor released a measure officially delaying the implementation of the rule and its related exemptions by 60 days. The applicability date is now June 9. Some argue a longer delay is necessary, while others contend the U.S. Securities and Exchange Commission should step in and craft a better rule.

D.C. joins coalition urging Labor Department to stop delaying fiduciary rule

Mark Iandolo Apr. 24, 2017, 8:45am

WASHINGTON (Legal Newsline) — District of Columbia Attorney General Karl A. Racine announced April 20 that he has joined a coalition of attorneys general led by Iowa Attorney General Tom Miller in urging the U.S. Department of Labor to lift its delay on implementing a rule.

Wells Fargo to pay $5.4 million, settles allegations of terminating employee for whistleblowing

Mark Iandolo Apr. 19, 2017, 10:55am

The U.S. Department of Labor announced April 3 that its Occupational Safety and Health Administration (OSHA) has ordered Wells Fargo Bank N.A. to compensate and reinstate a former bank manager who lost his job after reporting suspected fraudulent behavior to superiors and a bank ethics hotline.

Second public comment period on DOL’s fiduciary rule ends; some groups say more time is needed for review

Jessica Karmasek Apr. 18, 2017, 1:26pm

The U.S. Department of Labor’s controversial new rule mandates financial professionals who service individual retirement accounts, including IRAs and 401(k) plans, to serve the “best interest” of the savers and disclose conflicts of interest.

Televangelist's Ohio restaurant ordered to pay nearly $400,000 in back wages

Mark Iandolo Apr. 10, 2017, 12:42pm

CUYAHOGA FALLS, Ohio (Legal Newsline) — The U. S. Department of Labor (DOL) announced April 4 that Cathedral Buffet and its owner, televangelist Ernest Angley, have been ordered by a federal judge to pay $388,507 in back wages and damages to 235 “volunteers” who worked at the Cuyahoga Falls, Ohio, restaurant.

DOL releases measure to officially delay April applicability date of its fiduciary rule

Jessica Karmasek Apr. 10, 2017, 10:24am

The applicability date of the rule and related exemptions will be extended from April 10 to June 9, the U.S. Department of Labor announced last week.

Acosta, Trump’s pick to head DOL, says he will follow order to review fiduciary rule

Jessica Karmasek Mar. 27, 2017, 11:51am

R. Alexander Acosta, President Donald Trump’s labor secretary nominee, faced members of the U.S. Senate Health, Education, Labor and Pensions, or HELP, Committee during his confirmation hearing Wednesday.