ERISA 404(c) disclosures and white-label funds

[SavingsRUS]

Looking for guidance about what needs to be provided to meet the ERISA 404© disclosure requirements for white-label funds... can't seem to find anything that addresses white-label funds... does anyone have any suggestions?

[jpod]

All right, I'll admit my ignorance: What are "white label" funds? Do you mean separately managed investment accounts packaged just for the Plan in question? If you do I think they are addressed in the 404© regulations.

[SavingsRUS]

All right, I'll admit my ignorance: What are "white label" funds? Do you mean separately managed investment accounts packaged just for the Plan in question? If you do I think they are addressed in the 404© regulations.

I think that's right, jpod. White-label funds have generic names that do not reference a fund company name. Their names reflect their asset class or objective. A plan sponsor would use multiple investment managers within a single plan option (fund-of-fund) to combine investment strategies. There's lots of internet articles about why a plan sponsor would use these and why their use is on the rise. But white-label funds don't have ticker symbols and have short historical performance periods. These and other complexities make the typical required disclosures under ERISA 404© difficult. Are these funds already addressed under the regulations?

[jpod]

Substantively I am pretty darn certain they can qualify as one of the 404© eligible investments, but haven't the disclosure requirements been moved to the 404a-5 regulations?

[SavingsRUS]

Substantively I am pretty darn certain they can qualify as one of the 404© eligible investments, but haven't the disclosure requirements been moved to the 404a-5 regulations?

Technically yes - and no. The disclosure requirements are still under 2550.404c-1(b)(2)(i)(B), but 2550.404c-1(b)(2)(i)(B)(2) now cross-references to 2550.404a-5 to specify the information that must be disclosed in addition to the information required to be disclosed under 2550.404c-1(b)(2)(i)(B)(1) and (3).