The Department of Labor delayed the effective date for retirement plan service providers to begin disclosing fees to January 1, 2012. The rules had been expected to become effective on July 16, 2011. The rules will require service providers, such as record keepers and broker-dealers, to spell out to plan sponsors their fiduciary status, detail the services they provide and disclose compensation.
The Department of Labor issued what it called an interim final rule in July, 2011. That interim rule requires providers to improve disclosure to plan fiduciaries on fees for services and potential conflicts of interests that might affect those services. The interim final rule interprets Section 408(b)(2) of ERISA, which exempts reasonable arrangements for plan administrative services from ERISA’s prohibited transaction restrictions.
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