USI Advisors Inc. has agreed to pay nearly $1.3 million to 13pension plans to resolve alleged violations of the EmployeeRetirement Income Security Act.
An investigation by the U.S. Department of Labor’s EmployeeBenefits Security Administration found that the Glastonbury,Conn.-based fiduciary investment advisor made investments in mutualfunds on behalf of ERISA-covered defined benefit plan clients andreceived 12b-1 fees from those funds. A 12b-1 fee is paid by amutual fund out of fund assets to cover certain expenses.
The company failed to fully disclose receipt of those fees, andto use those fees for the benefit of the plans either by directlycrediting the amounts to the plans or by offsetting other fees theplans would be obligated to pay the company.
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