408(b)(2) Final Regulations

 Email Article  

  

 delicious  

The DOL issued the final 408(b)(2) regulations on Thursday February 2nd.  The key points in the final regualtions include:

• 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.