SEC Takes Action to Regulate IRA Administrators Further
April 26, 2011
LOS ANGELES -- In the latest effort to more extensively regulate administrators of self-directed individual retirement accounts, the Securities and Exchange Commission announced a cease-and-desist order against Bankers Pension Services Inc.. In its order, the SEC claimed that Bankers Pension, of Tustin, Calif., had acted as an unregistered broker-dealer by performing such activities as writing checks for clients to pay for securities transactions and receiving trade confirmations for clients. The SEC said the firm administers over $400 million in assets and has 7,000 customers. Bankers Pension agreed to the order without admitting or denying the SEC's claims. In a written statement, the company said it doesn't sell investments, provide investment advice or underwrite securities. It said the agreement with the SEC ``has no impact on clients.'' Earlier this year, the SEC unveiled a similar accord with another IRA administrator, Transcorp Pension Services Inc. of Irvine, Calif., which the agency said oversaw some $700 million in assets. Transcorp also agreed to a cease-and-desist order without admitting any wrongdoing. In 2009, the SEC filed a civil fraud suit against First Pension Corp., also of Irvine. Three of the principals of that now-defunct company later pleaded guilty to criminal-fraud charges. There wasn't any fraud alleged in either the Bankers Pension or Transcorp case.
