In a workshop at the 2013 NAPA/ASPPA 401(k) Summit, Fred Reish, partner at Drinker Biddle & Reath, and Samuel Brandwein, corporate retirement director at Morgan Stanley, took on advisors' new responsibilities after fee disclosure.
There are two "disclosure regimes" advisors have to comply with, according to the panelists: 408(b)(2) plan disclosures and 404(a)5 participant disclosures.
Under the 408(b)2 prohibited transaction rules, advisors have to "prudently evaluate compensation for covered service providers," Reish said. If they fail to do so, they've committed a prohibited transaction. Sponsors aren't off the hook, either, if they fail to collect disclosures.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
