ERISA Participant Disclosure Will Not Violate SEC Advertising Rules


In response to a request from the Department of Labor (DOL), the staff of the Securities and Exchange Commission (SEC) on October 26, 2011, issued a no-action letter concluding that disclosure provided by a retirement plan administrator to plan participants that is required by and complies with DOL's new disclosure regulation for participant-directed retirement plans will be treated “as if it were a communication that satisfies the requirements of Rule 482 under the Securities Act.”

-- Starting May 31, 2012, the DOL rule requires a retirement plan administrator to disclose specific investment-related information to plan participants, in a format intended to facilitate a comparison of investment options available under the plan.

-- SEC Rule 482 permits a registered mutual fund to include, among other things, uniformly calculated performance information in sales material.

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Published In: Administrative Agency Updates, Communications & Media Updates, Finance & Banking Updates, Labor & Employment Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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