She encouraged plan providers and advisors to offer a consolidated disclosure statement to assist plan fiduciaries in sorting through the material. A summary or guide to the disclosure information is not required now but probably will be in the future, she warned.
Failure to meet the July 1 deadline within 90 days will require the plan sponsor to fire the plan provider or advisor and report the situation to the Department of Labor. Outdated information or changes in the plan must be reported to the employer within 60 days.
Investment advisors must disclose to the retirement plan sponsor such things as whether they are registered under the federal Investment Advisers Act or under state law.
Included in those covered by the regulations are investment advisors that manage investments for pooled plans, managers of investment funds and investment advisors who serve as solicitors for an investment manager.
The new disclosure requirements do not apply to simplified employee pension plans, SIMPLE retirement accounts, IRAs and 403(b) plans.
-Karen DeMasters