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 from the ADV Part 2A – include:
- Description of the service provided to the Plan;
- A statement of the adviser’s fiduciary status;
- Direct compensation received by the Adviser from the Plan;
- Indirect compensation received by the Adviser from the Plan;
- Compensation that will be paid among Adviser, an affiliate or a subcontractor;
- Compensation that will be received by Adviser if the Plan Sponsor terminates the Service Agreement;
- The cost to your Plan of recordkeeping services;
- Fees and Expenses relating to your Plan’s investment options; and
- How Adviser receives its fees for the Services.