Compliance September 10, 2013

Court Authorizes Restoration of Plan Assets

The Department of Labor (DOL) has obtained a consent judgment to recover plan assets.
Reported by

Thomas Ramsburg is the sole owner and chief operating officer of TMR Inc., of Broomall, Pennsylvania. The company sponsors and administers a 401(k) plan for its employees, and Ramsburg is a fiduciary of the plan, responsible for making decisions concerning the remittance of employee contributions to the plan.

An investigation by the DOL’s Employee Benefits Security Administration (EBSA) found that from January 2008 to January 2011, the company deducted money from the participants’ pay as participant loan repayments to the plan. The company then failed to remit the aforementioned participant loan repayments to the plan, and remitted certain participant loan repayments late without interest.

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The DOL filed Perez v. Ramsburg, et al (No. 13-5073) in the U.S. District Court for the Eastern District of Pennsylvania to recover more than $18,000 in plan assets on behalf of the employees who participated in the 401(k) plan.

The court issued a consent judgment on September 3, 2013, and Ramsburg and TMR Inc. agreed to restore $13,486.80 in losses, plus $4,579.62 in interest. Under the judgment, the defendant is permanently enjoined from acting as a fiduciary or service provider to any plan covered by the Employee Retirement Income Security Act (ERISA), and has the duty to cooperate fully in the termination of the plan and the distribution of its assets to the extent that such cooperation is required.

The full text of the judgment can be found here.

Products September 10, 2013

FSI Adds Online Advocacy Tools

At its first-ever Financial Advisor Summit, the institute unveiled a new website, social network and additional tools to help members grow their businesses.
Reported by

After one year of development, the Financial Services Institute (FSI)’s new website aims to support its financial adviser members in the services they provide for their clients in a changing regulatory environment. FSI Social, the new network, gives advisers a secure virtual environment to collaborate and share best practices with their peers and FSI executives.

Two new tools, a one-minute video and corresponding infographic that explain the potential benefits of working with an independent financial adviser, have been reviewed by the Financial Industry Regulatory Authority (FINRA) and are available for free download by FSI members. The video and infographic may be posted on a member’s website or emailed to existing or prospective clients.

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FSI’s biweekly newsletter, Newsbrief, will now be emailed to members daily. A mobile news and advocacy application (app), which FSI expects to release next month, was also previewed at the summit.

“Our members understand the value of advocacy and our fight for a healthier, more business-friendly regulatory environment,” said FSI President and CEO Dale Brown.

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