Required disclosures when employer provides investment return information?

[Guest beppie_stark]

I have been hearing about SEC rule 482 and the effect on investment companies presentation of performance results. I am an internal retirement plan administrator. Our internal employee newsletter includes a chart of returns for the 401(k) investments. Should or must that chart be accompanied by disclosures and if so, which disclosures are required?

[Demosthenes]

See http://www.sec.gov/rules/final/33-8294.htm

[Demosthenes]

Sorry, cut that last one off before I was done.

Rule 482 is aimed at advertisements and statements made by Investment Companies under the Act. If you are not "advertising" funds and are not an investment company then I don't believe the requirements force you to include the disclosures.

However, I do think it would be a good idea to include the language on past performance, expenses, risks, etc just because it is important info for participants. To see which ones are required see the marketing material from your Mutual Funds. It's probable that you can borrow the language directly from there.