The DOL issued the final 408(b)(2) regulation on February 2, 2012.

Key points are:

• The extension of the effective date to July 1, 2012;
• The fact that service providers are not required to provide a summary of the disclosures, though the DOL provided a sample “guide” that is not mandatory;
• The addition of a requirement to describe the arrangement between a covered service provider and the payer of indirect compensation;
• Clarification that electronic transmission of the disclosures is permitted;
• Relief from the disclosure requirements for “frozen” 403(b) contracts;
• A new requirement that plan sponsors terminate the relationship with a service provider who fails or refuses to provide information on request;
• Limited relief for disclosures for brokerage accounts and similar arrangements.

Bruce Ashton and I have drafted a more detailed Alert for our law firm, Drinker Biddle & Reath LLP.  That Alert is located at:

http://www.drinkerbiddle.com/resources/publications/2012/finally-the-final-408b2-regulation

The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.

The views expressed in this article are the views of Fred Reish, and do not necessarily reflect the views of Faegre Drinker.