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Comments on the Voluntary
Fiduciary Correction Program
- Types of Transactions Covered
Background: The types of transactions
covered by the Program at this stage are limited. Furthermore, the Program release makes
clear that only the specific type of violation described is covered. For example, the no
action relief for a purchase of real estate from the plan sponsor would not extend to any
diversification violation, because the description of the eligible transaction does not
include the diversification issue (Section 2(c)(8)).
Comment: Because of its limited scope, there are few fiduciary violations that
could be completely resolved under the Program.
Recommendation: We understand the Department’s concern in launching such a
program that it start with a narrow subset of potential violations, as was done here. This
also was the case with the IRS voluntary correction programs, which have gradually been
expanded over the years to include a greater variety of potential violations and
correction measures. We would hope that as it gains experience, the Department will expand
the Program in the same manner. We further hope that the Department will be open to input
from us and other groups on an ongoing basis as to additional types of transactions to
consider for relief under the Program and alternative correction methods, and how to
provide complete relief for all aspects of a transaction.
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