fb-roll-0002
{
"arrangement": "A Financial Institution relying on PTE 2020-02 recommends a plan-to-IRA rollover. The Investment Professional prepares thorough written documentation of the specific reasons the rollover is in the investor's Best Interest.",
"stipulated_facts": [
"The documentation was completed and filed internally before the rollover, but it was first provided to the Retirement Investor three weeks after the rollover had executed.",
"All other conditions — fiduciary acknowledgment, services and conflicts description, Impartial Conduct Standards, policies and procedures, retrospective review — are stipulated satisfied."
]
}Judged only against the PTE 2020-02 conditions quoted in this item's sources, which conclusion follows about this arrangement? Answer with exactly one option id.
satisfies-conditions— The stipulated facts satisfy the quoted conditionsfails-pre-rollover-disclosure— It fails the pre-rollover disclosure condition — the documented reasons must reach the investor before the rollover (Section II(b)(3))fails-rollover-documentation— It fails the rollover-documentation condition — no documentation was created (Section II(c)(3))
fails-pre-rollover-disclosure
Section II(b)(3) requires that, prior to engaging in a recommended rollover, the Financial Institution provide the documentation of specific reasons to the Retirement Investor. Here the documentation existed (so II(c)(3) is not the failure) but reached the investor only three weeks after the rollover executed — the quoted timing requirement is not satisfied by after-the-fact delivery.
Selects fails-pre-rollover-disclosure; distinguishes the delivery-timing condition from the documentation condition.
“Prior to engaging in a rollover recommended pursuant to the exemption, the Financial Institution provides the documentation of specific reasons for the rollover recommendation”
Each quoted passage is exact-matched, after typographic normalization, against the corpus text fetched from the issuing authority (hashes in the corpus manifest). An item whose quote stops matching fails the build.
“Prior to engaging in a rollover recommended pursuant to the exemption, the Financial Institution provides the documentation of specific reasons for the rollover recommendation, required by Section II(c)(3), to the Retirement Investor.” — dol-pte-2020-02
The key correctly identifies that Section II(b)(3) requires the documentation of specific reasons for the rollover recommendation to be provided to the Retirement Investor prior to engaging in the rollover. Because the documentation was provided three weeks after the rollover executed, the arrangement fails this pre-rollover disclosure condition.
“Prior to engaging in a rollover recommended pursuant to the exemption, the Financial Institution provides the documentation of specific reasons for the rollover recommendation, required by Section II(c)(3), to the Retirement Investor.” — dol-pte-2020-02
Section II(b)(3) explicitly requires that the documentation of specific reasons be provided to the Retirement Investor prior to engaging in the rollover. The stipulated facts show documentation was created internally before the rollover but not provided to the investor until three weeks after execution, so the pre-rollover disclosure condition is not met. The documentation condition in II(c)(3) is satisfied because documentation exists.
v1; no errata. Demonstrate a key error and the correction is published here, credited — challenge policy.