When I was a kid, there was an ad about EF Hutton brokers. The line was simple: “When EF Hutton talks, people listen.”I didn’t know much about stocks back then, but I knew that line. It stuck with me.
Fast forward a few decades, and I’m in the retirement plan business. For plan sponsors, the EF Hutton of our world is the Department of Labor (DOL) and the IRS. When they talk, you better listen. More importantly, when they ask for something, you better comply.
This isn’t a relationship where negotiation or procrastination does you any favors. If the regulators send you a request, provide it — nothing more, nothing less. Don’t get creative, don’t withhold, and for goodness’ sake, don’t dawdle. The longer you delay, the more you raise eyebrows. And if there’s one thing you don’t want, it’s angry regulators with a magnifying glass over your plan.
I’ve seen sponsors turn a simple inquiry into a full-blown audit because they dragged their feet or gave half-answers. The DOL and IRS don’t like games. They like clean documents, timely responses, and sponsors who take compliance seriously.
So, my advice is as straightforward as that old EF Hutton ad: when the regulators speak, listen. It’ll save you time, money, and maybe even your sanity.
