The CPA community is expanding the scope of its ERISA plan audits in reaction to a new federal conflict of interest rule. While the rule was rescinded when the Trump administration was installed. it identified weaknesses in a vital compliance gap that the American Institute of CPAs has been quick to fill.
The rule, and the change in audit standards that it stimulated, embraces both vendors of services to ERISA plans and the plans’ sponsors.
Vendors that provide investment advice to ERISA qualified plans, the plans’ sponsors, fiduciaries of the plans, the plans’ participants, and IRAs and IRA owners must either avoid payments that create conflicts of interest or comply with the terms of an exemption issued by the U.S. Department of Labor.
Organizations that sponsor ERISA plans will need to change their plan management systems. Because a plan’s vendors will be expected to produce studies, analyses, or certifications that plan fiduciaries can rely on to satisfy their plan’s audit practices.
Learn more about how the audit standards affect the retirement plan industry by listening to the 3 minute audio briefing available on this page below.
Ron W. Hagan
Chief Operating Officer
Roland|Criss
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