Employment Law

Employment Law Questions? Ask an Employment Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Employment Law

I am a Retired Financial Planner who doesn't take new

Customer Question
I am a Retired Financial...
I am a Retired Financial Planner who doesn't take new clients. I have 6 existing clients I advise them on their 401K assets. I advise Asset Allocation (within and outside their 401k plan so as to get there entire look of assets) and set up the transfer of monies within mutual funds available to them in the plan. After doing this for 25 yrs I have suddenly and for the first time been told I am in custody of their 401K funds. Using this definition I am now not in compliance with State requirements. I have a contract with each client specifically stating I do not have custody of the account and custody remains with the company hired by the 401k administrator. Long story short I now am going to be required to meet more regulator laws which are administrated by the SEC (such as setting up an accounting section, on demand audits and others which are done by broker/dealers such as Schwab-Fidelity Bank-Mellon Bank - Etrade- Ameritrade and others). The Dominion Energy (who I worked for and took an early package out) does not have the capability or procedure to even set up something like this. My question is do I have anything to stand on to put up a fight against my newly found custody of my 6 clients still in the 401k plan? I am going to go thur with fighting them all the way to the 3 commissioners. I am now at the Director level and will go before him soon. Advise please.
JA: Because employment law varies from place to place, can you tell me what state this is in?
Customer: I have learned a lot but feel very much out of my element and need some advise from someone like you guys. gw
JA: Is the employment agreement "at will," union, full time or part time?
Customer: I am not employed with them but the 6 clients are a mixture of union and salary-both have different SPD which both allow me to give advise.
JA: Anything else you want the lawyer to know before I connect you?
Customer: Yes, but it would take hours.
Submitted: 1 month ago.Category: Employment Law
Show More
Show Less
Ask Your Own Employment Law Question
Answered in 47 minutes by:
11/16/2017
Employment Lawyer: Law Educator, Esq., Attorney replied 1 month ago
Law Educator, Esq.
Category: Employment Law
Satisfied Customers: 120,234
Experience: 20+ Years of Employment Law Experience
Verified

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Under 17 CFR 275.206(4)-2:

(2)Custody means holding, directly or indirectly, client funds or securities, or having any authority to obtain possession of them. You have custody if a related person holds, directly or indirectly, client funds or securities, or has any authority to obtain possession of them, in connection with advisory services you provide to clients. Custody includes:

(i) Possession of client funds or securities (but not of checks drawn by clients and made payable to third parties) unless you receive them inadvertently and you return them to the sender promptly but in any case within three business days of receiving them;

(ii) Any arrangement (including a general power of attorney) under which you are authorized or permitted to withdraw client funds or securities maintained with a custodian upon your instruction to the custodian; and

(iii) Any capacity (such as general partner of a limited partnership, managing member of a limited liability company or a comparable position for another type of pooled investment vehicle, or trustee of a trust) that gives you or your supervised person legal ownership of or access to client funds or securities.

So, in order to successfully argue against the rule application to your situation, you need to put your evidence together that you do not meet that criteria above regarding your advice provided to those clients. I would not recommend going without a local finance/investment law attorney beyond the director level with this appeal. If you cannot convince the Director you do not fit the definition of custody based on how you deal with these clients, getting an attorney to seek to pursue the matter further is your best option as they can examine your whole arrangement and determine if there is another angle to pursue or could potentially change your agreement with the clients just enough to avoid you coming under the rule change.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

Ask Your Own Employment Law Question
Customer reply replied 28 days ago
of course you are correct in advising me of the requirements. I had been advised by the SCC to look at 21VAC5-80-146 for a more descriptive analysis of what is in play when determining custody or not. I have been providing this service to my clients for 25 years only to be told is has just become an issue!!! Upon more research I found that EIRISA is the governing body but other State Departments do have certain access to compliance issues. While I do not know what has changed in the last year which would disqualify me as a financial representative allowed to research, advise and place transfers of clients assets insuring the best possible outcome based upon objective results from their survey. I also need access to their 401k assets to make sure I am giving my clients a preferred Asset Allocation model based upon all know assets held by the client, including the 401K at work. I might add I worked for the company for 20 yrs before my retirement and know much about the system. I have a contract with each individual basically stating our goals and indicating that I do not and will not have custody of their assets at any time. I am there to devise a plan and to enact that plan. I do not know of why they are so adamant about getting me out of the way. One other comment I would add is Dominion uses Financial Engines to provide employees with an alternative to setting up their own model. Mr. Sharp devised it and it seems to be a very good program. I love his Sharp ratio and use it in my analysis while devising an asset allocation for my clients. The last thing I would like to mention is that I only have 18 clients of which 8 have 401ks thru Dominion Energy. By the end of the year I will only have 6 because two are retiring and will transfer all assets from the program at work. The six will still be with me until they all retire and transfer assets out to another brokerage firm. With so little employees and the handling of a very small amount of clients I can't figure out why they are going after me after all these years. I have just notified the Manager I plan to sue the SCC for Age Discrimination based on the many, many obstacles they have inadvertently placed in my way so as to cause me time, money and many hours of research to become somewhat capability of bringing an action against them. So we are up against some very good people to say the least. Hope you can help.
Employment Lawyer: Law Educator, Esq., Attorney replied 28 days ago

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

ERISA is not a governing body, it is the Employee Retirement Income Security Act, it is a law regarding retirement and employee benefit plans.

The issue is the control over the accounts, which places you in custody. So if you do not have access to withdraw, deposit or move around funds in the account you do not have custody of the accounts and the owner of the account retains custody and you would need to simply advise them on how and where to move their money and you can assist them on doing so.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

Ask Your Own Employment Law Question
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Employment Law
Satisfied Customers: 120,234
120,234 Satisfied Customers
Experience: 20+ Years of Employment Law Experience

Law Educator, Esq. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I must thank you all for such a positive and knowledgeable Expert in your Employment Law category. She has provided much relief and answers for me in the midst of dealing with a case. I am totally pleased with her customer service and care.

MildredWashington, DC

Excellent direction from Socrateaser to help me preserve and pursue my rights as a proud American who has become unemployed in this messed-up economic downfall. Thank you

Happy CustomerDenver, CO

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

< Previous | Next >

Meet the Experts:

Tina

Tina

Lawyer

8,184 satisfied customers

JD, BBA, recognized by ABA for excellence.

Allen M., Esq.

Allen M., Esq.

Employment Lawyer

12,537 satisfied customers

Employment/Labor Law Litigation

Marsha411JD

Marsha411JD

Lawyer

12,302 satisfied customers

Licensed Attorney with 29 yrs. exp in Employment Law

Infolawyer

Infolawyer

Lawyer

12,025 satisfied customers

Licensed attorney helping employers and employees.

JB Umphrey

JB Umphrey

Lawyer

6,273 satisfied customers

Assisting employees and employers for over 14 years.

John

John

Employment Lawyer

3,889 satisfied customers

Exclusively practice labor and employment law.

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

3,007 satisfied customers

I provide employment and discrimination law advice in my own practice.

< Previous | Next >

Related Employment Law Questions
I have a question about age discrimination in hiring?
I have a question about age discrimination in hiring? … read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
948 satisfied customers
I'm trying to find an erisa policy lawyer to see if pursuing
I'm trying to find an erisa policy lawyer to see if pursuing Employer long term disability /unum supplement can still be made available through an attorney/lawyer that can step into federal courtroom … read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
120,234 satisfied customers
I'm trying to find an erisa policy lawyer to see if pursuing
Second opinion] I'm trying to find an erisa policy lawyer to see if pursuing Employer long term disability /unum supplement can still be made available through an attorney/lawyer that can step into fe… read more
John
John
Employment Lawyer
Doctoral Degree
3,889 satisfied customers
Age discrimination. terminated for my age. false reason for
age discrimination. terminated for my age. false reason for termination. … read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
I had an age discrimination law suit filed by an attorney
I had an age discrimination law suit filed by an attorney who subsequently removed herself from my case due to litigations against her for malpractice. My case went before DORA who gave a half hearted… read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
120,234 satisfied customers
I am filing an age discrimination lawsuit against my ex
I am filing an age discrimination lawsuit against my ex employer, like any project I need to package the file the proper way, any advice to work on this ?… read more
Legal Expert Justin
Legal Expert Justin
Law Degree
227 satisfied customers
I'm wondering if I have a potential age discrimination case.
I'm wondering if I have a potential age discrimination case. Recently let go and my previous employer hired a younger person at lower salary who I trained and then was let go. She was hired with my sa… read more
ScottyMacEsq
ScottyMacEsq
Doctoral Degree
17,192 satisfied customers
Lawyers that handle age discrimination cases and race cases.
Lawyers that handle age discrimination cases and race cases … read more
Damien Bosco
Damien Bosco
3,160 satisfied customers
I have a question about age discrimination. Will this cost
I have a question about age discrimination. Will this cost me money? … read more
Infolawyer
Infolawyer
Lawyer
Doctoral Degree
12,025 satisfied customers
I have a question about age discrimination. With both
I'm 65 years old. I gave a year's notice (January 2017) from my job because I'm the EA to the president of our company. That is what other EAs at the position have done. A few weeks after I gave notice they posted my job and hired someone immediately. She's 40 years old. I told them it was way too soon and I had given notice as of March 31, 2018. They told me not to worry that I would have my job until I left. They immediately had me train her and told me to find special projects to work on until I leave. I told them no that it was my job until I left. They told me to work on special projects and then just go home and travel, play with grandkids, whatever. My boss said it was a sweet deal and I should take it. I couldn't get him to put anything in writing. So now I have completed 5 special projects. The CEOs office is planning a retirement party for me December 15 and I will just stay home until March 31 and get my pay and benefits. Today the HR manager said I misunderstood and there were other projects to work on. I am just done with their lying and taking my job and giving it to someone else. What are my options?… read more
Olivia Kent
Olivia Kent
Managing Partner
Doctoral Degree
1,668 satisfied customers
Question on age discrimination person has been with company
Question on age discrimination person has been with company 26 years in same position age of person 72 Engineering Dept. Last two job performance reviews negative . The last job performance review was… read more
ScottyMacEsq
ScottyMacEsq
Doctoral Degree
17,192 satisfied customers
Not sure if it's age discrimination but very well could be.
Not sure if it's age discrimination but very well could be. After 8 months in my current possition was given a scathing review. Non og these issues were ever discussed with me in the previus 8 months.… read more
LegalPro54
LegalPro54
Doctoral Degree
1,258 satisfied customers
I sent info on Age Discrimination earlier, and did not get
I sent info on Age Discrimination earlier, and did not get any response. What Happened? Hans ****** ****************** ********** … read more
Damien Bosco
Damien Bosco
3,160 satisfied customers
I believe I am a victim of age discrimination on my job, how
I believe I am a victim of age discrimination on my job, how can I move forward with a suit … read more
LegalPro54
LegalPro54
Doctoral Degree
1,258 satisfied customers
I went to the EEOC for age discrimination. They in turn made
I went to the EEOC for age discrimination. They in turn made me sign an AOF retracting it for 90 days severance. I felt I was forced to resign … read more
LegalPro54
LegalPro54
Doctoral Degree
1,258 satisfied customers
What does it take to win an age discrimination lawsuit?
What does it take to win an age discrimination lawsuit? … read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
948 satisfied customers
How does age discrimination go on for. is there a drop dead
how long does age discrimination go on for. is there a drop dead number of years? … read more
John
John
Employment Lawyer
Doctoral Degree
3,889 satisfied customers
Lawsuit for age discrimination and retalation, Lumberton NC,
Lawsuit for age discrimination and retalation JA: Because laws vary from place to place, can you tell me what state this is in? Customer: Lumberton NC JA: Is the employment agreement "at will," union,… read more
John
John
Employment Lawyer
Doctoral Degree
3,889 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x