Los Angeles partners Fred Reish and Bruce Ashton were quoted in an InvestmentNews article titled, “The disclosure 401(k) advisers may be missing under the DOL fiduciary rule come June 9.” Many service providers will be required to send written disclosures acknowledging their new fiduciary status following the rule’s June 9 effective date.
Under a 2012 ERISA regulation, written disclosure is required from service providers describing their services, compensation and “status” as fiduciary to 401(k) clients. These disclosures are normally one-time notifications, unless there is a change in the original information. Bruce noted that the disclosures are important as many broker-dealers previously didn’t disclose they were fiduciaries.
Those broker-dealers and advisers affected must provide the updated disclosures within 60 days. Fred’s blog post, “Interesting Angles on the DOL’s Fiduciary Rule #49,” noted that this guidance is vague since it is unclear when the beginning the of the 60 days becomes applicable, and therefore recommends a conservative position and sending the disclosure in June.
Read “The disclosure 401(k) advisers may be missing under the DOL fiduciary rule come June 9.” [InvestmentNews]
Read “401(k) Advisors, Don’t Ignore This Disclosure.” [Barron’s]
Read Fred's blog post, “Interesting Angles on the DOL’s Fiduciary Rule #49.”