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Bloomberg Law: Crypto 401(k) Warning Casts Shadow Over T. Rowe Price SettlementApril 27, 2022
The anti-crypto guidance issued by the US Department of Labor last month that includes implications for future brokerage window regulations has caused global money manager T. Rowe Price Group Inc. to halt a US$18 million class action settlement. “If the DOL were to require fiduciary oversight of individual investment options offered through brokerage windows, the monitoring obligations associated with maintaining such an offering in the plan would become materially more burdensome and costly than they were at the time the settlement agreement was entered,” said Brian Boyle, a partner at O’Melveny who represents T. Rowe. Boyle added that the US$18 million value the company agreed to in that deal doesn’t take into account the added costs the Labor Department’s new brokerage window interpretation could add to the company.
Bloomberg Law subscribers can read the full article here.