Glastonbury fiduciary investment firm USI Advisors Inc. on Friday agreed to pay $1.3 million to 13 pension plans following an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration.
The alleged violations said USI received investment fees from mutual funds covered by the Employee Retirement Income Security Act. The fees were meant to cover USI expenses, but USI failed to disclose those fees per ERISA requirements and use them to benefit the plans.
In addition to paying $1.3 million, USI will no longer provide bundled investment advisory services to any ERISA-covered plan without first entering into a written agreement. USI then will disclose all fees from those investments and transactions.
The alleged violations occurred between 2004 and 2010. USI is a subsidiary of USI Consulting Group, a Goldman Sachs Capital Partners Co.
