ERISA 408(b)(2) Deadline Approaching

May 24, 2012

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The final deadline for ERISA covered service providers to meet the 408(b)(2) disclosure requirements is July 1, 2012.  Failure to provide the required disclosures will result in a prohibited transaction under ERISA and the Internal Revenue Code.  For an investment advisor who is a service provider to an ERISA covered plan this would likely result in the investment advisor having to repay any compensation received after July 1, plus interest.  Additionally, the investment advisor could face a fine from the U.S. Department of Labor (“DOL”).

RIA Compliance Consultants can help your registered investment advisor create a 408(b)(2) disclosure guide that will satisfy all of the disclosure requirements of the new 408(b)(2) regulations.  Additionally, we can review and update the language in Items 4 and 5 of your Form ADV Part 2A Disclosure Brochure to ensure that you are properly disclosing your retirement plan services.

With the July 1st compliance deadline fast approaching, it is important not to delay!  If you are an existing client of RIA Compliance Consultants, please contact your consultant. If you are a new client, please click here to schedule a time to speak with one of our consultants.

Posted by Bryan Hill
Labels: 408(b)(2), ERISA