Quan Vest Consultants Inc

Allegations: QUAN-VEST CONSULTANTS, INC. HAS VIOLATED THE EMPLOYEE RETIREMENT INCOME SECURITY ACT (ERISA) BY FAILING TO PROMPTLY INFORM ITS ERISA PLAN CLIENTS ABOUT A STYLE CHANGE IN THEIR INVESTMENT. Status: Pending Summary: IN SEPTEMBER OF 2023, THE EMPLOYEE BENEFITS SECURITY ADMINISTRATION'S ("EBSA") OF THE U.S. DEPARTMENT OF LABOR NOTIFIED QUAN-VEST IT WAS REVIEWING THE FIRM FOR COMPLIANCE WITH TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT ("ERISA"). EBSA'S REVIEW FOCUSED ON A HEDGE FUND OF FUNDS STRATEGY IN WHICH A SMALL NUMBER OF QUAN-VEST'S CLIENTS INVESTED MINOR ALLOCATIONS, GENERALLY 3% OR LESS OF THEIR OVERALL PORTFOLIOS, FOR A NUMBER OF YEARS. BEGINNING IN DECEMBER 2020, THE HEDGE FUND OF FUNDS AT ISSUE EXERCISED ITS DISCRETION TO INVEST A PORTION OF THE STRATEGY'S ASSETS IN DIGITAL ASSETS - I.E., CRYPTOCURRENCIES. EBSA ANNOUNCED ON MARCH 10, 2022 IN COMPLIANCE ASSISTANCE RELEASE NO. 2022-01 THAT IT WOULD BE CONDUCTING AN INVESTIGATIVE PROGRAM AIMED AT PLANS WITH INVESTMENTS IN CRYPTOCURRENCIES. EBSA'S REVIEW OF QUAN-VEST APPEARS TO BE PART OF EBSA'S INITIATIVE IN THIS REGARD. AFTER FULLY COOPERATING WITH EBSA, QUAN-VEST RECEIVED A VOLUNTARY COMPLIANCE LETTER FROM EBSA STATING IT DETERMINED QUAN-VEST VIOLATED ERISA BY FAILING TO PROMPTLY NOTIFY AFFECTED CLIENTS OF THE INVESTMENT MANAGER'S STYLE CHANGE - I.E., THE ALLOCATION TO CRYPTOCURRENCY - AND REQUESTED QUAN-VEST TAKE CERTAIN CORRECTIVE ACTIONS. EBSA PROVIDED QUAN-VEST WITH THE OPPORTUNITY TO COMMENT ON ITS CONCLUSIONS BEFORE DETERMINING WHETHER AND HOW TO PROCEED. QUAN-VEST SUBMITTED ITS RESPONSE ON JULY 1, 2024. QUAN-VEST VIGOROUSLY AND ADAMANTLY DISPUTES EBSA'S FINDINGS IN THIS MATTER AND ITS RESPONSE SOUGHT TO DEMONSTRATE TO EBSA THAT ITS DETERMINATION WAS INCORRECT. A FINAL DETERMINATION ON THIS ISSUE HAS NOT BEEN MADE.