Los Angeles partner Fred Reish was quoted in a Dow Jones Factiva article titled, “Engaging Participants.”
The article discusses why it is imperative that advisers keep up to date with regulatory guidance memoranda issued by the DOL. Fee disclosure documentation under ERISA Section 408(b)(2) is not only relatively new and subject to revision, but it also can be difficult for plans to decipher.
Fred, who writes regularly about fee disclosure requirements for publications such as PLANSPONSOR, has said that the requirements can present a heavy burden on service providers, in that they must document very precisely where they have made disclosures.
"It appears that the DOL is concerned that, by using multiple disclosure documents or lengthy or complex documents service providers may have presented the disclosure in a manner that is difficult for plan sponsors to understand," Fred wrote in a blog entry earlier this year. While the DOL wants to help make it easier for sponsors to grasp the disclosure data, it also is incumbent upon advisers to help interpret all such disclosure that is material to their plans.