Has anyone seen an ERISA 408(g) compliance audit?

[Peter Gulia]

If one wants the "PPA" statutory prohibited-transactions exemption for an eligible investment advice arrangement, ERISA 408(g)(5) requires an annual compliance audit on whether the arrangement meets the conditions of ERISA 408(g), and requires that the independent compliance auditor's written report be issued to the independent fiduciary who approved the plan's use of the arrangement.

Has anyone seen such a report? Is anyone in America doing this?

[Peter Gulia]

In the words of the dull teacher in the Ferris Bueller movie: anyone? anyone?

[Guest snappy]

In the words of the dull teacher in the Ferris Bueller movie: anyone? anyone?

My sense is that no one is doing any of the PPA investment advice stuff because it is so, so in flux. Seems like any expense on that could easily be money down the drain, and there is even less appetite for that than usual these days. FWIW.

[Peter Gulia]

snappy, thank you for your observation!

It mostly confirms what I've suspected: An adviser that could most benefit from the new statutory exemption is one that can't exempt its intended service under pre-2006 law. But such an adviser isn't eager to develop a service until the law changes or enjoys an interpretation that's no longer controversial.

[Guest PPAFiduciaryAdviser]

Hi Peter,

In writing a blog post, I just ran across your question. You and snappy are mostly correct, as we have found that our operating as a PPA Fiduciary Adviser is extremely rare, but we have done so since we were certified by CEFEX. CEFEX and DALBAR are the only organization doing the EIAA audit that I am aware of, due to the minimal number of groups operating in such a capacity. Operating through CEFEX, our auditor is Roland|Criss out of TX. We have now gone through 3 audits since being the 1st company in the nation to complete the CEFEX Fiduciary Adviser (PPA) certification. Let me know if I can be of service as it relates to you question or interest in the PPA Fiduciary Adviser safe harbor.

Best,

Chad Griffeth

BeManaged

http://bemanagednow.com

cgriffeth@myactium.com

P: (616) 871-0751

snappy, thank you for your observation!

It mostly confirms what I've suspected: An adviser that could most benefit from the new statutory exemption is one that can't exempt its intended service under pre-2006 law. But such an adviser isn't eager to develop a service until the law changes or enjoys an interpretation that's no longer controversial.

[mbozek]

Hi Peter,

In writing a blog post, I just ran across your question. You and snappy are mostly correct, as we have found that our operating as a PPA Fiduciary Adviser is extremely rare, but we have done so since we were certified by CEFEX. CEFEX and DALBAR are the only organization doing the EIAA audit that I am aware of, due to the minimal number of groups operating in such a capacity. Operating through CEFEX, our auditor is Roland|Criss out of TX. We have now gone through 3 audits since being the 1st company in the nation to complete the CEFEX Fiduciary Adviser (PPA) certification. Let me know if I can be of service as it relates to you question or interest in the PPA Fiduciary Adviser safe harbor.

Best,

Chad Griffeth

BeManaged

http://bemanagednow.com

cgriffeth@myactium.com

P: (616) 871-0751

[

How much do you charge for an audit?

[Guest PPAFiduciaryAdviser]

We provide the advice, while a CEFEX auditor provides the audit. The firm that performs the function is Roland|Criss out of TX.

Hi Peter,

In writing a blog post, I just ran across your question. You and snappy are mostly correct, as we have found that our operating as a PPA Fiduciary Adviser is extremely rare, but we have done so since we were certified by CEFEX. CEFEX and DALBAR are the only organization doing the EIAA audit that I am aware of, due to the minimal number of groups operating in such a capacity. Operating through CEFEX, our auditor is Roland|Criss out of TX. We have now gone through 3 audits since being the 1st company in the nation to complete the CEFEX Fiduciary Adviser (PPA) certification. Let me know if I can be of service as it relates to you question or interest in the PPA Fiduciary Adviser safe harbor.

Best,

Chad Griffeth

BeManaged

http://bemanagednow.com

cgriffeth@myactium.com

P: (616) 871-0751

[

How much do you charge for an audit?

[Guest Kelly Gray]

Does BeManaged rely on the PPA participant advice regs for the managed account services as well as the advice services?

Thanks

Hi Peter,

In writing a blog post, I just ran across your question. You and snappy are mostly correct, as we have found that our operating as a PPA Fiduciary Adviser is extremely rare, but we have done so since we were certified by CEFEX. CEFEX and DALBAR are the only organization doing the EIAA audit that I am aware of, due to the minimal number of groups operating in such a capacity. Operating through CEFEX, our auditor is Roland|Criss out of TX. We have now gone through 3 audits since being the 1st company in the nation to complete the CEFEX Fiduciary Adviser (PPA) certification. Let me know if I can be of service as it relates to you question or interest in the PPA Fiduciary Adviser safe harbor.

Best,

Chad Griffeth

BeManaged

http://bemanagednow.com

cgriffeth@myactium.com

P: (616) 871-0751

snappy, thank you for your observation!

It mostly confirms what I've suspected: An adviser that could most benefit from the new statutory exemption is one that can't exempt its intended service under pre-2006 law. But such an adviser isn't eager to develop a service until the law changes or enjoys an interpretation that's no longer controversial.