You are on page 1of 1

FOR IMMEDIATE RELEASE

Inspira more than prepared for SEC rule change

Pittsburgh, PA – March 12, 2010 – Turnkey IRA solutions provider Inspira announced Friday that its
offerings are compliant with the Securities and Exchange Commission’s revision to rule 206(4)-2, also
known as the “custody rule”, which went into effect today.

The revision to SEC rule 206(4)-2 was passed in December 2009 and was modified to promote
transparency from investment advisers and prevent devastating Bernie Madoff-like Ponzi schemes. A
lack of fanfare surrounding this revision has left advisers that were unaware of the ramifications
searching frantically for a solution.

Inspira’s turnkey offerings, which were already in compliance, may be the answer that advisers across
the country are looking for and may need.

The “custody rule” stipulates that an adviser managing investments for an individual while also
delivering account statements must utilize an outside auditing firm to perform random audits. The
outside firm is then required to report any violations directly to the SEC.

The revision gets sticky for certain recordkeepers and firms that roll up trades into one omnibus account
and, within the recordkeeping system, allocate for portions of those accounts to shareholders. In the
case of 401(k) plans that fall into this category, the custodians do not always send quarterly statements
to trustees due to the additional servicing costs associated for recordkeepers and firms. Those
custodians, on the other hand, cannot create their own quarterly statements because they cannot
retrieve the necessary information without engaging the recordkeepers or firms.

Inspira’s turnkey offerings utilize an independent recordkeeping solution for IRA accounts that can be
employed by advisers and their custodians to address this issue, without the expense of hiring an
auditing firm.

“We take pride operating our business in an honest and completely transparent fashion,” said Inspira
President and CEO Lowell M. Smith Jr. “Our goal has always been to offer industry-leading solutions that
rely on simplicity and are carried out with integrity.”

Based in Pittsburgh, PA, Inspira provides third party administrators, financial advisors, affinity groups,
broker dealers, CPAs and payroll companies with turnkey, cost-eliminating IRA solutions. Inspira was
founded in 2002 by Smith Jr., who has 27 years of experience in the retirement and financial services
industry, including nine years with the United States Department of Labor. Smith Jr. was also the
primary architect in the development and implementation of retirement start-up Invesmart, Inc. Inspira
is a subsidiary of Pittsburgh-based venture capital firm ABG Capital.

For more information, contact Inspira Director of Marketing Luis Gibb at 412-440-2006 or via e-mail at
marketing@InspiraFS.com.

8 Penn Center West | Suite 101 | Pittsburgh, PA 15276


Inspirafs.com | 877.IRA.1TPA

You might also like