Tuesday, February 14, 2012

New investment advisor fee disclosure is coming

Effective July 1 covered service providers (such as investment advisors) that expect to receive at least $1,000 in compensation for services to a covered plan to more thoroughly and clearly disclose their total compensation. If fees are based on revenue numbers which are unknoen until the year is over, the rules state that a record keeper can provide a reasonable estimate accompanied by an explanation of how the cost was calculated.

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