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News from, March 7, 2012
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Finally the Final...408(b)(2) Regulation

By Fred Reish, Partner/Chair, Fiduciary Services ERISA Team at Drinker Biddle & Reath LLP

This article is one in a series of articles on interesting issues presented under the 408(b)(2) regulation and its disclosure requirements.

 The DOL issued the final 408(b)(2) regulation in February.  Key points are:

  • The extension of the effective date to July 1, 2012
  • The fact that service providers are not required to provide a summary of the disclosures, though the DOL provided a sample "guide” that is not mandatory
  • The addition of a requirement to describe the arrangement between a covered service provider and the payer of indirect compensation
  • Clarification that electronic transmission of the disclosures is permitted
  • Relief from the disclosure requirements for "frozen” 403(b) contracts
  • A new requirement that plan sponsors terminate the relationship with a service provider who fails or refuses to provide information on request
  • Limited relief for disclosures for brokerage accounts and similar arrangements.  
A more detailed alert can be found here.

Article provided by Fred Reish. Reish is a partner Drinker Biddle in Los Angeles. He works in the firm's Employee Benefits & Executive Compensation Practice Group and is chair of the Financial Services ERISA Team. He has specialized in employee benefits law since 1973 and works with both private and public sector entities and their plans and fiduciaries; representation of plans, employers and fiduciaries before the governing agencies (e.g., the IRS and the DOL); consulting with banks, trust companies, insurance companies and mutual fund management companies on 401(k) investment products and issues related to plan investments; and representation of broker-dealers and registered investment advisers on issues related to fiduciary status and compliance, prohibited transactions and internal procedures.

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