DOL Urges Pension Managers To Probe Madoff Risks

Law360, New York (February 6, 2009, 12:00 AM EST) -- As the revelation of Bernard L. Madoff's alleged $50 billion Ponzi scheme devastates investors and spurs lawsuits, the U.S. Department of Labor has urged investment managers and fiduciaries to scrutinize employee benefit plans' exposure to the scheme.

On Thursday, the DOL's Employee Benefits Security Administration issued guidelines to control potential Madoff damage for fiduciaries of plans covered by the Employee Retirement Income Security Act.

“Fiduciaries ... should address these events in a manner consistent with their fiduciary duties of prudence and loyalty to the plan's participants...
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