An expanded set of assessment guidelines for plan sponsors and service providers has been released by the Center for Fiduciary Excellence, in response to the DOL's impending fee disclosure regulations.
The new fiduciary guidelines will pertain to both 404a-5, which provides disclosure to plan participants, as well as 408b-2(c), which requires service providers to disclose costs of services to plan sponsors and any direct or indirect compensation.
"As the ERISA regulatory landscape evolves, CEFEX is working to ensure that both plan service providers and plan sponsors fully understand this regulation and are prepared to comply," said Carlos Panksep, CEFEX's managing director.
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The enhanced certification criteria will ensure service providers are properly disclosing plan-related general information, administrative expense, and investment information to plan sponsors, and in turn plan sponsors are disclosing these fees to participants. It is a complement to the existing Global Standard of Fiduciary Excellence and ASPPA Standard of Practice for Retirement Plan Service Providers.
The up-to-date comprehensive checklists are now part of CEFEX's detailed assessment methodology for plan sponsors and their service providers, which include record-keepers and investment advisors. They will serve both groups by providing practical guides to specifically itemize how to disclose plan information.
"CEFEX-certified ASPPA record-keepers who prepare the administrative disclosures for plan sponsors can assure their clients of their compliance to the regulation and their desire to assist plan sponsors in best serving the needs of participants and beneficiaries,"
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