ERISA 411 & Advisor Background Checks

ERISA Section 411 specifically precludes those convicted of a variety of crimes, including financial shortcomings, from serving ERISA plans. Ironically, plan sponsors rarely perform background checks before hiring an advisor. In addition to insurance policy reviews and discounts, the EAE Program will offer plan sponsors an "optional" advisor background check service. While the sponsor must pay for the service, the advisor finalists must give their permission before the background check is initiated. Advisors would see the report in advance and be given the opportunity to correct any inaccuracies.