A person who renders (click here) “investment advice” under the regulation, and receives a fee or other compensation,
direct or indirect, for doing so, is a fiduciary under section 3(21)(A)(ii). The current regulation provides in relevant part as follows:
direct or indirect, for doing so, is a fiduciary under section 3(21)(A)(ii). The current regulation provides in relevant part as follows:
(c) Investment advice. (1) A person shall be deemed to be rendering “investment advice” to an employee benefit plan, within the meaning of section
3(21)(A)(ii) of the Employee Retirement Income Security Act of 1974 (the Act) and this paragraph, only if:
(i) Such person renders advice to the plan as to the value of securities or other property, or makes recommendation as to the advisability of investing in,purchasing, or selling securities or other property; and
(ii) Such person either directly or indirectly (e.g., through or together with
any affiliate)--
(A) Has discretionary authority or control, whether or not pursuant to agreement, arrangement or understanding, with respect to purchasing or selling securities or other property for the plan; or
(B) Renders any advice described in paragraph (c)(1)(i) of this section on a regular basis to the plan pursuant to a mutual agreement, arrangement or understanding, written or otherwise, between such person and the plan or a fiduciary with respect to the plan, that such services will serve as a primary basis for investment decisions with respect to plan assets, and that such person will render individualized investment advice to the plan based on the particular needs of the plan regarding such matters as, among other things, investment policies or
strategy, overall portfolio composition, or diversification of plan investments....
U.S. Labor Department Sues Four Firms for Entrusting Investments to Madoff (click title to entry - thank you)
By - Oct 21, 2010 4:10 PM ETIvy Asset Management LLC, Beacon Associates Management Corp., J.P. Jeanneret Associates Inc., Andover Associates Management Corp. and their principals were named as defendants in a complaint filed today in federal court in Manhattan.
The suit was brought under the Employee Retirement Income Security Act on behalf of union-sponsored and single-employer benefit plans, according to the complaint. The Labor Department asked the court to order the defendants to “restore to the plans all losses suffered” as a result of fiduciary breaches by the defendants related to Madoff investments....
U.S. Department of Labor sues Syracuse firm to recover union pensions that went to Madoff (click here)
Published: Thursday, October 21, 2010, 4:50 PM Updated: Thursday, October 21, 2010, 5:53 PM
Syracuse, NY -- The U.S. Department of Labor today accused J.P. Jeanneret Associates Inc., of Syracuse, its executives, and three other investment companies and executives, of causing pension, health and benefit plans to lose hundreds of millions of dollars through investments with Bernard L. Madoff.
The lawsuit was filed today in the U.S. District Court for the Southern District of New York. If successful, it would return money to thousands of workers in Central New York workers who had money in union pension plans that invested with Jeanneret, a Syracuse investment firm....
