Investment advisers to ERISA plans and plan asset funds will be subject to new disclosure obligations effective July 1, 2012

Abstract

Purpose

The purpose of this paper is to explain the US Department of Labor's final regulations under Section 408(b)(2) of ERISA, concerning the fact that information investment advisers to ERISA‐covered pension plans and private investment funds deemed to hold the “plan assets” of ERISA‐covered pension plans must disclose regarding the services they provide and the compensation they receive to such ERISA plans.

Design/methodology/approach

The paper summarizes the material provisions of the Final Regulations that apply to investment advisers to funds deemed to hold plan assets, including definitions of “covered service providers” and “covered plans,” a listing of required disclosures, an explanation of disclosure timing and format, and a discussion of possible responses for advisers that are not covered service providers.

Findings

Under the Final Regulations, investment advisers to ERISA‐covered pension plans and private investment funds deemed to hold the “plan assets” of ERISA‐covered pension plans must disclose certain information regarding the services they provide and the compensation they receive to such ERISA plans.

Originality/value

The paper provides practical guidance from experienced financial services lawyers.

Citation

Bogner, I., Projansky, R., Weinstein, S. and Scoll, A. (2012), "Investment advisers to ERISA plans and plan asset funds will be subject to new disclosure obligations effective July 1, 2012", Journal of Investment Compliance, Vol. 13 No. 4, pp. 37-40. https://doi.org/10.1108/15285811211284119