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Labor Agency Flexes Cybersecurity Muscle With Subpoena Win (1)

Aug. 17, 2022, 4:36 PMUpdated: Aug. 18, 2022, 8:36 PM

A recent federal appeals court ruling allowing the US Labor Department to enforce a subpoena against a retirement plan recordkeeper marks an escalation in the department’s cybersecurity crackdown that’s putting advisers on edge.

Benefits administrator Alight Solutions LLC must hand over documents and information that the Employee Benefits Security Administration requested in 2019, even though the company isn’t held to the same strict fiduciary standards as the plan sponsors it serves, the US Court of Appeals for the Seventh Circuit held earlier this week.

The case highlights the lengths to which the Labor Department is willing to go to ...