The Advisor Services Disclosure Form provides a tool to help you disclose all the services you offer. Note: It may not be available for use by all firms. Please inquire with your firm to see if it’s available to you.
ERISA Disclosure Requirements
Under ERISA Section 408(b)(2), certain retirement plan service providers are required to disclose their fees and compensation. They must provide a description of their services for those costs to the responsible plan fiduciary. The responsible plan fiduciary, often the plan sponsor, can review this information to determine if it is both reasonable and appropriate.
In addition, any covered service provider, affiliate or subcontractor must disclose its status when serving in any of the following capacity to the plan as:
- A fiduciary
- A registered investment advisor
- Both a fiduciary and registered investment advisor
The Advisor Services Disclosure Form helps you disclose all the services you offer for the fees that are assessed. This form allows you to provide your clients with:
- Information about you, your firm and your team
- A list of the services you provide for the plan and the timeframe in which the services will be performed
- Disclosure of whether or not you are serving in any type of fiduciary capacity for the plan
Determining if you are a covered service provider
A covered service provider is an individual or firm who expects to receive at least $1,000 in compensation for services to a covered plan throughout the entire length of the relationship.
In addition they may be:
- An ERISA fiduciary service provider to a covered plan or “plan asset vehicle” in which such plan invests
- An investment advisor registered under federal or state law
- Record keepers or brokers, such as a platform provider, who make designated investment alternatives available to the covered plan
- Miscellaneous service providers who receive compensation for services such as: accounting, auditing, actuarial, banking, consulting, custodial, insurance, investment advisory, legal, recordkeeping, securities brokerage and third-party administration
Note:The disclosure form may not be available for use by all firms. Please inquire with your firm about availability of the form.