Compliance Solutions for Investment Advisers

Category Archives: ERISA

ERISA 408(b)(2) – Fees and Expenses Disclosures

One of the disclosure required of Advisers by the Department of Labor under ERISA section 408(b)(2) is in regard to the fees and expenses relating to a Plan’s investment options. Fees and expenses include additional investment disclosures from providers of fiduciary services to an investment contract, product, or entity that holds plan assets and in

ERISA 408(b)(2) – Recordkeeping Disclosures

One of the disclosure required of Advisers by the Department of Labor under ERISA section 408(b)(2) is in regard to the cost of recordkeeping services. Recordkeeping services include services related to plan administration and monitoring of plan and participant and beneficiary transactions (e.g., enrollment, payroll deductions and contributions, offering designated investment alternatives and other covered

ERISA 408(b)(2) – Indirect Compensation

One of the disclosure required of Advisers by the Department of Labor under ERISA section 408(b)(2) is in regard to indirect compensation. “Indirect” compensation is compensation received from any source other than the covered plan, the plan sponsor, the covered service provider, or an affiliate. Examples of Indirect Compensation: Soft Dollars; 12b-1 fees (even if

ERISA 408(b)(2) Disclosures

Changes to section 408(b)(2) requires advisers to make additional disclosures to Plan Sponsors.  These changes take affect on July 1, 2012. The Final Rule: Reasonable Contract or Arrangement Under Section 408(b)(2) – Fee Disclosure is actually fairly clear as to what is required. The required disclosures – which must be made in a document separate

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