Modified Field Assistance Bulletin eliminates rule
calling for fund disclosures of investments available through
brokerage windows and other similar arrangements.
In early May, the U.S. Department of Labor (DOL) issued
guidance, in the form of "frequently asked questions"
(FAQs), on the plan participant disclosure rules under DOL
Regulation 404a-5 that come into effect at the end of August. The
guidance, contained in Field Assistance Bulletin (FAB) 2012-02,
raised a number of issues for open brokerage window arrangements.
Specifically, Q&A 30 discussed how the disclosure requirements
apply to investments that are made available through an investment
platform but are not specifically designated as investment options
under the plan, such as an open brokerage window or similar
arrangement. In response to concerns raised by the plan sponsor and
investment communities, DOL has now revised the FAB to withdraw the
more open-ended and controversial aspects of its guidance.
