Ongoing 408(b)(2) Requirements?

[khn]

It was my understanding that after the initial disclosures were made in 2012, there is only a requirement to provide 408(b)(2) information on an ongoing basis if there are changes to the initial information. However, a colleague of mine believes the notice is required to be sent to plan sponsors annually, even if there are no changes to the fees or services provided. We are a Registered Investment Advisor and our current Service Agreement complies with the regulations without any changes. If anyone can shed some light i'd appreciate it.

[BG5150]

A 408(b) Notice is good for the life of the contract. That is, until something changes.

If your contract has an expiration date, the notice must be sent when the contract is renewed.

Our contracts are on-going. It is assumed the relationship continues until one party or the other decides to cancel it.

Now, after the initial notice, we only send another if fees change or if something is added,

[khn]

Thank you; I thought so but couldn't find much too much out there on this.

[ETA Consulting LLC]

Don't confuse this with the annual participant disclosures under ERISA 404(a)(5).

Good Luck!

[Bird]

I've seen many investment companies doing 408(b)(2) annually; I think it is easier for them to just do it annually and thereby include any changes. But I agree; once is enough until the info changes.

[MoJo]

I agree it's "one and done" unless renewals or changes happen - however, since we have to do the participant disclosure annually, and we're in the same databases to compile that information as we would be for the 408b2 notices, we do provide a "refreshed" 408b2 notice at the same time we give our clients the participant notice. We also let them know it's because we're transparent about fees and (by inference) better than our competitors....