Retrospective Review Deadline Approaching

Posted on June 9th, 2023 at 2:11 PM
Retrospective Review Deadline Approaching

From the desk of Jim Eccleston at Eccleston Law 

The deadline for completing the initial retrospective review required by the Department of Labor (DOL) is quickly approaching.

Registered investment advisors (RIAs) who depend on PTE 2020-02 must perform a yearly examination of their policies and procedures to ensure compliance with the aforementioned exemption. This retrospective review needs to be recorded in a written
report, which a senior executive officer of the firm must endorse. The review should be reasonably designed to help the RIA identify and prevent any breaches of the Impartial Conduct Standards and the firm's policies and procedures relating to compliance with PTE 2020-02.

Completing the Review and Report is required to receive the benefits provided by the exemption. Put simply, if they are not adequately fulfilled, the protection is forfeited, and all conflicting recommendations covered by the PTE are treated as prohibited
transactions. The implications of having numerous prohibited transactions, reaching into the hundreds or even thousands, are beyond imagination.

According to the DOL, the retrospective review should incorporate the examination of a subset of transactions to assess compliance. The selection of this sample should be designed to identify potential compliance issues across a diverse array of transaction types and sizes, encompassing both significant and minor transactions.

The retrospective review should be conducted yearly and finalized within six months after the conclusion of the review period. Specifically, a review encompassing the calendar year 2022 must be finished by or before July 1, 2023.


Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.


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