• Employee Benefits Security Administration Alleges Glastonbury, Connecticut Investment Firm Violated ERISA

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”USI Advisors Inc. has agreed to pay $1,265,608.70 to 13 pension plans to resolve alleged violations of the Employee Retirement Income Security Act. ”An investigation by the U.S. Department of Labor’s Employee Benefits Security Administration found that the Glastonbury, Conn.-based fiduciary investment adviser made investments in mutual funds on behalf of ERISA-covered defined benefit plan clients and received 12b-1 fees from those funds. A 12b-1 fee is paid by a mutual fund out of fund assets to cover certain expenses. "USI Advisors failed to fully disclose the receipt of the 12b-1 fees, and to use those fees for the benefit of the plans either by directly crediting the amounts to the plans or by offsetting other fees the plans would be obligated to pay the company.” Source: USDOL-EBSA Photo: Business & Legal Resources

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