29 CFR 2550.408g-1

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29 CFR § 2550.408g-1 - Investment advice - participants and beneficiaries. | CFR | US Law | LII / Legal Information Institute

LII > Electronic Code of Federal Regulations (e-CFR) > Title 29 - Labor
> Subtitle B - Regulations Relating to Labor
> CHAPTER XXV - EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF
LABOR
> SUBCHAPTER F - FIDUCIARY RESPONSIBILITY UNDER THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974
> PART 2550 - RULES AND REGULATIONS FOR FIDUCIARY RESPONSIBILITY
> § 2550.408g-1 Investment advice - participants and beneficiaries.

29 CFR § 2550.408g-1 - Investment advice - participants
and beneficiaries.
CFR

Table of Popular Names

§ 2550.408g-1 Investment advice - participants and
beneficiaries.
(a) In general.
(1) This section provides relief from the prohibitions of section 406 of the
Employee Retirement Income Security Act of 1974, as amended (ERISA or
the Act), and section 4975 of the Internal Revenue Code of 1986, as
amended (the Code), for certain transactions in connection with the
provision of investment advice to participants and beneficiaries. This
section, at paragraph (b), implements the statutory exemption set forth at
sections 408(b)(14) and 408(g)(1) of ERISA and sections 4975(d)(17) and
4975(f)(8) of the Code. The requirements and conditions set forth in this
section apply solely for the relief described in paragraph (b) of this section
and, accordingly, no inferences should be drawn with respect to
requirements applicable to the provision of investment advice not addressed
by this section.

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(2) Nothing contained in ERISA section 408(g)(1), Code section 4975(f)(8),
or this regulation imposes an obligation on a plan fiduciary or any other
party to offer, provide or otherwise make available any investment advice to
a participant or beneficiary.
(3) Nothing contained in ERISA section 408(g)(1), Code section 4975(f)(8),
or this regulation invalidates or otherwise affects prior regulations,
exemptions, interpretive or other guidance issued by the Department of
Labor pertaining to the provision of investment advice and the
circumstances under which such advice may or may not constitute a
prohibited transaction under section 406 of ERISA or section 4975 of the
Code.
(b) Statutory exemption (1) General. Sections 408(b)(14) and 408(g)(1) of ERISA provide an
exemption from the prohibitions of section 406 of ERISA for transactions
described in section 408(b)(14) of ERISA in connection with the provision of
investment advice to a participant or a beneficiary if the investment advice
is provided by a fiduciary adviser under an “eligible investment advice
arrangement.” Sections 4975(d)(17) and (f)(8) of the Code contain parallel
provisions to ERISA sections 408(b)(14) and (g)(1).
(2) Eligible investment advice. For purposes of section 408(g)(1) of
ERISA and section 4975(f)(8) of the Code, an “eligible investment advice
arrangement” means an arrangement that meets either the requirements of
paragraph (b)(3) of this section or paragraph (b)(4) of this section, or both.
(3) Arrangements that use fee leveling. For purposes of this section, an
arrangement is an eligible investment advice arrangement if (i)
(A) Any investment advice is based on generally accepted investment
theories that take into account the historic risks and returns of different
asset classes over defined periods of time, although nothing herein shall
preclude any investment advice from being based on generally accepted
investment theories that take into account additional considerations;
(B) Any investment advice takes into account investment management
and other fees and expenses attendant to the recommended
investments;
(C) Any investment advice takes into account, to the extent furnished
by a plan, participant or beneficiary, information relating to age, time
horizons (e.g., life expectancy, retirement age), risk tolerance, current
investments in designated investment options, other assets or sources
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of income, and investment preferences of the participant or beneficiary.
A fiduciary adviser shall request such information, but nothing in this
paragraph (b)(3)(i)(C) shall require that any investment advice take into
account information requested, but not furnished by a participant or
beneficiary, nor preclude requesting and taking into account additional
information that a plan or participant or beneficiary may provide;
(D) No fiduciary adviser (including any employee, agent, or registered
representative) that provides investment advice receives from any party
(including an affiliate of the fiduciary adviser), directly or indirectly, any
fee or other compensation (including commissions, salary, bonuses,
awards, promotions, or other things of value) that varies depending on
the basis of a participant's or beneficiary's selection of a particular
investment option; and
(ii) The requirements of paragraphs (b)(5), (6), (7), (8) and (9) and
paragraph (d) of this section are met.
(4) Arrangements that use computer models. For purposes of this
section, an arrangement is an eligible investment advice arrangement if the
only investment advice provided under the arrangement is advice that is
generated by a computer model described in paragraphs (b)(4)(i) and (ii) of
this section under an investment advice program and with respect to which
the requirements of paragraphs (b)(5), (6), (7), (8) and (9) and paragraph
(d) are met.
(i) A computer model shall be designed and operated to (A) Apply generally accepted investment theories that take into account
the historic risks and returns of different asset classes over defined
periods of time, although nothing herein shall preclude a computer
model from applying generally accepted investment theories that take
into account additional considerations;
(B) Take into account investment management and other fees and
expenses attendant to the recommended investments;
(C) Appropriately weight the factors used in estimating future returns of
investment options;
(D) Request from a participant or beneficiary and, to the extent
furnished, utilize information relating to age, time horizons (e.g., life
expectancy, retirement age), risk tolerance, current investments in
designated investment options, other assets or sources of income, and
investment preferences; provided, however, that nothing herein shall

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preclude a computer model from requesting and taking into account
additional information that a plan or a participant or beneficiary may
provide;
(E) Utilize appropriate objective criteria to provide asset allocation
portfolios comprised of investment options available under the plan;
(F) Avoid investment recommendations that:
(1) Inappropriately favor investment options offered by the fiduciary
adviser or a person with a material affiliation or material contractual
relationship with the fiduciary adviser over other investment options,
if any, available under the plan; or
(2) Inappropriately favor investment options that may generate
greater income for the fiduciary adviser or a person with a material
affiliation or material contractual relationship with the fiduciary
adviser; and
(G)( 1) Except as provided in paragraph (b)(4)(i)(G)(2) of this section,
take into account all designated investment options, within the meaning
of paragraph (c)(1) of this section, available under the plan without
giving inappropriate weight to any investment option.
(2) A computer model shall not be treated as failing to meet the
requirements of this paragraph merely because it does not make
recommendations relating to the acquisition, holding or sale of an
investment option that:
(i) Constitutes an annuity option with respect to which a participant
or beneficiary may allocate assets toward the purchase of a stream
of retirement income payments guaranteed by an insurance
company, provided that, contemporaneous with the provision of
investment advice generated by the computer model, the participant
or beneficiary is also furnished a general description of such options
and how they operate; or
(ii) The participant or beneficiary requests to be excluded from
consideration in such recommendations.
(ii) Prior to utilization of the computer model, the fiduciary adviser shall
obtain a written certification, meeting the requirements of paragraph (b)
(4)(iv) of this section, from an eligible investment expert, within the
meaning of paragraph (b)(4)(iii) of this section, that the computer model
meets the requirements of paragraph (b)(4)(i) of this section. If, following
certification, a computer model is modified in a manner that may affect its
ability to meet the requirements of paragraph (b)(4)(i), the fiduciary
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adviser shall, prior to utilization of the modified model, obtain a new
certification from an eligible investment expert that the computer model,
as modified, meets the requirements of paragraph (b)(4)(i).
(iii) The term “eligible investment expert” means a person that, through
employees or otherwise, has the appropriate technical training or
experience and proficiency to analyze, determine and certify, in a manner
consistent with paragraph (b)(4)(iv) of this section, whether a computer
model meets the requirements of paragraph (b)(4)(i) of this section;
except that the term “eligible investment expert” does not include any
person that: Has any material affiliation or material contractual
relationship with the fiduciary adviser, with a person with a material
affiliation or material contractual relationship with the fiduciary adviser, or
with any employee, agent, or registered representative of the foregoing;
or develops a computer model utilized by the fiduciary adviser to satisfy
this paragraph (b)(4).
(iv) A certification by an eligible investment expert shall (A) Be in writing;
(B) Contain (1) An identification of the methodology or methodologies applied in
determining whether the computer model meets the requirements of
paragraph (b)(4)(i) of this section;
(2) An explanation of how the applied methodology or methodologies
demonstrated that the computer model met the requirements of
paragraph (b)(4)(i) of this section;
(3) A description of any limitations that were imposed by any person
on the eligible investment expert's selection or application of
methodologies for determining whether the computer model meets
the requirements of paragraph (b)(4)(i) of this section;
(4) A representation that the methodology or methodologies were
applied by a person or persons with the educational background,
technical training or experience necessary to analyze and determine
whether the computer model meets the requirements of paragraph (b)
(4)(i); and
(5) A statement certifying that the eligible investment expert has
determined that the computer model meets the requirements of
paragraph (b)(4)(i) of this section; and
(C) Be signed by the eligible investment expert.
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(v) The selection of an eligible investment expert as required by this
section is a fiduciary act governed by section 404(a)(1) of ERISA.
(5) Arrangement must be authorized by a plan fiduciary.
(i) Except as provided in paragraph (b)(5)(ii) of this section, the
arrangement pursuant to which investment advice is provided to
participants and beneficiaries pursuant to this section must be expressly
authorized by a plan fiduciary (or, in the case of an Individual Retirement
Account (IRA), the IRA beneficiary) other than: The person offering the
arrangement; any person providing designated investment options under
the plan; or any affiliate of either. Provided, however, that for purposes of
the preceding, in the case of an IRA, an IRA beneficiary will not be treated
as an affiliate of a person solely by reason of being an employee of such
person.
(ii) In the case of an arrangement pursuant to which investment advice is
provided to participants and beneficiaries of a plan sponsored by the
person offering the arrangement or a plan sponsored by an affiliate of
such person, the authorization described in paragraph (b)(5)(i) of this
section may be provided by the plan sponsor of such plan, provided that
the person or affiliate offers the same arrangement to participants and
beneficiaries of unaffiliated plans in the ordinary course of its business.
(iii) For purposes of the authorization described in paragraph (b)(5)(i) of
this section, a plan sponsor shall not be treated as a person providing a
designated investment option under the plan merely because one of the
designated investment options of the plan is an option that permits
investment in securities of the plan sponsor or an affiliate.
(6) Annual audit.
(i) The fiduciary adviser shall, at least annually, engage an independent
auditor, who has appropriate technical training or experience and
proficiency, and so represents in writing to the fiduciary adviser, to:
(A) Conduct an audit of the investment advice arrangements for
compliance with the requirements of this section; and
(B) Within 60 days following completion of the audit, issue a written
report to the fiduciary adviser and, except with respect to an
arrangement with an IRA, to each fiduciary who authorized the use of
the investment advice arrangement, in accordance with paragraph (b)
(5) of this section, that (1) Identifies the fiduciary adviser,
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(2) Indicates the type of arrangement (i.e., fee leveling, computer
models, or both),
(3) If the arrangement uses computer models, or both computer
models and fee leveling, indicates the date of the most recent
computer model certification, and identifies the eligible investment
expert that provided the certification, and
(4) Sets forth the specific findings of the auditor regarding compliance
of the arrangement with the requirements of this section.
(ii) With respect to an arrangement with an IRA, the fiduciary adviser:
(A) Within 30 days following receipt of the report from the auditor, as
described in paragraph (b)(6)(i)(B) of this section, shall furnish a copy
of the report to the IRA beneficiary or make such report available on its
Web site, provided that such beneficiaries are provided information, with
the information required to be disclosed pursuant to paragraph (b)(7) of
this section, concerning the purpose of the report, and how and where
to locate the report applicable to their account; and
(B) In the event that the report of the auditor identifies noncompliance
with the requirements of this section, within 30 days following receipt of
the report from the auditor, shall send a copy of the report to the
Department of Labor at the following address: Investment Advice
Exemption Notification, U.S. Department of Labor, Employee Benefits
Security Administration, Room N-1513, 200 Constitution Ave., NW.,
Washington, DC 20210, or submit a copy electronically to
[email protected].
(iii) For purposes of this paragraph (b)(6), an auditor is considered
independent if it does not have a material affiliation or material
contractual relationship with the person offering the investment advice
arrangement to the plan or with any designated investment options under
the plan, and does not have any role in the development of the
investment advice arrangement, or certification of the computer model
utilized under the arrangement.
(iv) For purposes of this paragraph (b)(6), the auditor shall review
sufficient relevant information to formulate an opinion as to whether the
investment advice arrangements, and the advice provided pursuant
thereto, offered by the fiduciary adviser during the audit period were in
compliance with this section. Nothing in this paragraph shall preclude an

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auditor from using information obtained by sampling, as reasonably
determined appropriate by the auditor, investment advice arrangements,
and the advice pursuant thereto, during the audit period.
(v) The selection of an auditor for purposes of this paragraph (b)(6) is a
fiduciary act governed by section 404(a)(1) of ERISA.
(7) Disclosure to participants.
(i) The fiduciary adviser must provide, without charge, to a participant or
a beneficiary before the initial provision of investment advice with regard
to any security or other property offered as an investment option, a
written notification of:
(A) The role of any party that has a material affiliation or material
contractual relationship with the fiduciary adviser in the development of
the investment advice program, and in the selection of investment
options available under the plan;
(B) The past performance and historical rates of return of the
designated investment options available under the plan, to the extent
that such information is not otherwise provided;
(C) All fees or other compensation that the fiduciary adviser or any
affiliate thereof is to receive (including compensation provided by any
third party) in connection with (1) The provision of the advice;
(2) The sale, acquisition, or holding of any security or other property
pursuant to such advice; or
(3) Any rollover or other distribution of plan assets or the investment
of distributed assets in any security or other property pursuant to
such advice;
(D) Any material affiliation or material contractual relationship of the
fiduciary adviser or affiliates thereof in the security or other property;
(E) The manner, and under what circumstances, any participant or
beneficiary information provided under the arrangement will be used or
disclosed;
(F) The types of services provided by the fiduciary adviser in connection
with the provision of investment advice by the fiduciary adviser;
(G) The adviser is acting as a fiduciary of the plan in connection with
the provision of the advice; and

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(H) That a recipient of the advice may separately arrange for the
provision of advice by another adviser that could have no material
affiliation with and receive no fees or other compensation in connection
with the security or other property.
(ii)
(A) The notification required under paragraph (b)(7)(i) of this section
must be written in a clear and conspicuous manner and in a manner
calculated to be understood by the average plan participant and must be
sufficiently accurate and comprehensive to reasonably apprise such
participants and beneficiaries of the information required to be provided
in the notification.
(B) The appendix to this section contains a model disclosure form that
may be used to provide notification of the information described in
paragraph (b)(7)(i)(C) of this section. Use of the model form is not
mandatory. However, use of an appropriately completed model
disclosure form will be deemed to satisfy the requirements of
paragraphs (b)(7)(i) and (ii) of this section with respect to such
information.
(iii) The notification required under paragraph (b)(7)(i) of this section
may, in accordance with 29 CFR 2520.104b-1, be provided in written or
electronic form.
(iv) With respect to the information required to be disclosed pursuant to
paragraph (b)(7)(i) of this section, the fiduciary adviser shall, at all times
during the provision of advisory services to the participant or beneficiary
pursuant to the arrangement (A) Maintain accurate, up-to-date information in a form that is
consistent with paragraph (b)(7)(ii) of this section,
(B) Provide, without charge, accurate, up-to-date information to the
recipient of the advice no less frequently than annually,
(C) Provide, without charge, accurate information to the recipient of the
advice upon request of the recipient, and
(D) Provide, without charge, to the recipient of the advice any material
change to the information described in paragraph (b)(7)(i) at a time
reasonably contemporaneous to the change in information.
(8) Disclosure to authorizing fiduciary. The fiduciary adviser shall, in
connection with any authorization described in paragraph (b)(5)(i) of this
section, provide the authorizing fiduciary with a written notice informing the
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fiduciary that:
(i) The fiduciary adviser intends to comply with the conditions of the
statutory exemption for investment advice under section 408(b)(14) and
(g) of the Employee Retirement Income Security Act and this section;
(ii) The fiduciary adviser's arrangement will be audited annually by an
independent auditor for compliance with the requirements of the statutory
exemption and related regulations; and
(iii) The auditor will furnish the authorizing fiduciary a copy of that
auditor's findings within 60 days of its completion of the audit.
(9) Other conditions. The requirements of this paragraph are met if (i) The fiduciary adviser provides appropriate disclosure, in connection
with the sale, acquisition, or holding of the security or other property, in
accordance with all applicable securities laws,
(ii) Any sale, acquisition, or holding of a security or other property occurs
solely at the direction of the recipient of the advice,
(iii) The compensation received by the fiduciary adviser and affiliates
thereof in connection with the sale, acquisition, or holding of the security
or other property is reasonable, and
(iv) The terms of the sale, acquisition, or holding of the security or other
property are at least as favorable to the plan as an arm's length
transaction would be.
(c) Definitions. For purposes of this section:
(1) The term “ designated investment option” means any investment
option designated by the plan into which participants and beneficiaries may
direct the investment of assets held in, or contributed to, their individual
accounts. The term “designated investment option” shall not include
“brokerage windows,” “self-directed brokerage accounts,” or similar plan
arrangements that enable participants and beneficiaries to select
investments beyond those designated by the plan. The term “designated
investment option” has the same meaning as the term “designated
investment alternative” as defined in 29 CFR 2550.404a-5(h).
(2)
(i) The term “ fiduciary adviser” means, with respect to a plan, a person
who is a fiduciary of the plan by reason of the provision of investment
advice referred to in section 3(21)(A)(ii) of ERISA by the person to the
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(A) Registered as an investment adviser under the Investment Advisers
Act of 1940 (15 U.S.C. 80b-1 et seq.) or under the laws of the State in
which the fiduciary maintains its principal office and place of business,
(B) A bank or similar financial institution referred to in section 408(b)
(4) of ERISA or a savings association (as defined in section 3(b)(1) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(b)(1)), but only if
the advice is provided through a trust department of the bank or similar
financial institution or savings association which is subject to periodic
examination and review by Federal or State banking authorities,
(C) An insurance company qualified to do business under the laws of a
State,
(D) A person registered as a broker or dealer under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.),
(E) An affiliate of a person described in paragraphs (c)(2)(i)(A) through
(D), or
(F) An employee, agent, or registered representative of a person
described in paragraphs (c)(2)(i)(A) through (E) of this section who
satisfies the requirements of applicable insurance, banking, and
securities laws relating to the provision of advice.
(ii) Except as provided under 29 CFR 2550.408g-2, a fiduciary adviser
includes any person who develops the computer model, or markets the
computer model or investment advice program, utilized in satisfaction of
paragraph (b)(4) of this section.
(3) A “ registered representative” of another entity means a person
described in section 3(a)(18) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)(18)) (substituting the entity for the broker or dealer referred
to in such section) or a person described in section 202(a)(17) of the
Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)(17)) (substituting the
entity for the investment adviser referred to in such section).
(4) “ Individual Retirement Account” or “IRA” means (i) An individual retirement account described in section 408(a) of the
Code;
(ii) An individual retirement annuity described in section 408(b) of the
Code;
(iii) An Archer MSA described in section 220(d) of the Code;
(iv) A health savings account described in section 223(d) of the Code;
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(v) A Coverdell education savings account described in section 530 of the
Code;
(vi) A trust, plan, account, or annuity which, at any time, has been
determined by the Secretary of the Treasury to be described in any of
paragraphs (c)(4)(i) through (v) of this section;
(vii) A “simplified employee pension” described in section 408(k) of the
Code; or
(viii) A “simple retirement account” described in section 408(p) of the
Code.
(5) An “ affiliate” of another person means (i) Any person directly or indirectly owning, controlling, or holding with
power to vote, 5 percent or more of the outstanding voting securities of
such other person;
(ii) Any person 5 percent or more of whose outstanding voting securities
are directly or indirectly owned, controlled, or held with power to vote, by
such other person;
(iii) Any person directly or indirectly controlling, controlled by, or under
common control with, such other person; and
(iv) Any officer, director, partner, copartner, or employee of such other
person.
(6)
(i) A person with a “ material affiliation” with another person means (A) Any affiliate of the other person;
(B) Any person directly or indirectly owning, controlling, or holding, 5
percent or more of the interests of such other person; and
(C) Any person 5 percent or more of whose interests are directly or
indirectly owned, controlled, or held, by such other person.
(ii) For purposes of paragraph (c)(6)(i) of this section, “interest” means
with respect to an entity (A) The combined voting power of all classes of stock entitled to vote or
the total value of the shares of all classes of stock of the entity if the
entity is a corporation;
(B) The capital interest or the profits interest of the entity if the entity
is a partnership; or
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(C) The beneficial interest of the entity if the entity is a trust or
unincorporated enterprise.
(7) Persons have a “ material contractual relationship” if payments
made by one person to the other person pursuant to contracts or
agreements between the persons exceed 10 percent of the gross revenue,
on an annual basis, of such other person.
(8) “ Control” means the power to exercise a controlling influence over the
management or policies of a person other than an individual.
(d) Retention of records. The fiduciary adviser must maintain, for a period
of not less than 6 years after the provision of investment advice under this
section any records necessary for determining whether the applicable
requirements of this section have been met. A transaction prohibited under
section 406 of ERISA shall not be considered to have occurred solely because
the records are lost or destroyed prior to the end of the 6-year period due to
circumstances beyond the control of the fiduciary adviser.
(e) Noncompliance.
(1) The relief from the prohibited transaction provisions of section 406 of
ERISA and the sanctions resulting from the application of section 4975 of
the Code described in paragraph (b) of this section shall not apply to any
transaction described in such paragraphs in connection with the provision of
investment advice to an individual participant or beneficiary with respect to
which the applicable conditions of this section have not been satisfied.
(2) In the case of a pattern or practice of noncompliance with any of the
applicable conditions of this section, the relief described in paragraph (b) of
this section shall not apply to any transaction in connection with the
provision of investment advice provided by the fiduciary adviser during the
period over which the pattern or practice extended.
(f) Effective date and applicability date. This section shall be effective
December 27, 2011. This section shall apply to transactions described in
paragraph (b) of this section occurring on or after December 27, 2011.

A
F

§ 2550.408 -1
A

D

This document contains important information about [enter name of
Fiduciary Adviser] and how it is compensated for the investment advice
provided to you. You should carefully consider this information in your
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evaluation of that advice.
[enter name of Fiduciary Adviser] has been selected to provide investment
advisory services for the [enter name of Plan]. [enter name of Fiduciary
Adviser] will be providing these services as a fiduciary under the
Employee Retirement Income Security Act (ERISA). [enter name of
Fiduciary Adviser], therefore, must act prudently and with only your
interest in mind when providing you recommendations on how to invest
your retirement assets.
C

F

A

R

P

[enter name of Fiduciary Adviser] (is/is not) compensated by the plan for
the advice it provides. (if compensated by the plan, explain what and how
compensation is charged (e.g., asset-based fee, flat fee, per advice)). (If
applicable, [enter name of Fiduciary Adviser] is not compensated on the
basis of the investment(s) selected by you.)
Affiliates of [enter name of Fiduciary Adviser] (if applicable enter, and
other parties with whom [enter name of Fiduciary Adviser] is related or
has a material financial relationship) also will be providing services for
which they will be compensated. These services include: [enter
description of services, e.g., investment management, transfer agent,
custodial, and shareholder services for some/all the investment funds
available under the plan.]
When [enter name of Fiduciary Adviser] recommends that you invest your
assets in an investment fund of its own or one of its affiliates and you
follow that advice, [enter name of Fiduciary Adviser] or that affiliate will
receive compensation from the investment fund based on the amount you
invest. The amounts that will be paid by you will vary depending on the
particular fund in which you invest your assets and may range from _% to
_%. Specific information concerning the fees and other charges of each
investment fund is available from [enter source, such as: your plan
administrator, investment fund provider (possibly with Internet Web site
address)]. This information should be reviewed carefully before you make
an investment decision.
(if applicable enter, [enter name of Fiduciary Adviser] or affiliates of
[enter name of Fiduciary Adviser] also receive compensation from nonaffiliated investment funds as a result of investments you make as a result
of recommendations of [enter name of Fiduciary Adviser]. The amount of
this compensation also may vary depending on the particular fund in
which you invest. This compensation may range from _% to _%. Specific
information concerning the fees and other charges of each investment
fund is available from [enter source, such as: your plan administrator,
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investment fund provider (possibly with Internet Web site address)]. This
information should be reviewed carefully before you make an investment
decision.
(if applicable enter, In addition to the above, [enter name of Fiduciary
Adviser] or affiliates of [enter name of Fiduciary Adviser] also receive
other fees or compensation, such as commissions, in connection with the
sale, acquisition or holding of investments selected by you as a result of
recommendations of [enter name of Fiduciary Adviser]. These amounts
are: [enter description of all other fees or compensation to be received in
connection with sale, acquisition or holding of investments]. This
information should be reviewed carefully before you make an investment
decision.
(if applicable enter, When [enter name of Fiduciary Adviser] recommends
that you take a rollover or other distribution of assets from the plan, or
recommends how those assets should subsequently be invested, [enter
name of Fiduciary Adviser] or affiliates of [enter name of Fiduciary
Adviser] will receive additional fees or compensation. These amounts are:
[enter description of all other fees or compensation to be received in
connection with any rollover or other distribution of plan assets or the
investment of distributed assets]. This information should be reviewed
carefully before you make a decision to take a distribution.
C

I

C

A

The fees and other compensation that [enter name of Fiduciary Adviser]
and its affiliates receive on account of assets in [enter name of Fiduciary
Adviser] (enter if applicable, and non-[enter name of Fiduciary Adviser])
investment funds are a significant source of revenue for the [enter name
of Fiduciary Adviser] and its affiliates. You should carefully consider the
impact of any such fees and compensation in your evaluation of the
investment advice that [enter name of Fiduciary Adviser] provides to you.
In this regard, you may arrange for the provision of advice by another
adviser that may have no material affiliation with or receive no
compensation in connection with the investment funds or products offered
under the plan. This type of advice is/is not available through your plan.
I

R

While understanding investment-related fees and expenses is important in
making informed investment decisions, it is also important to consider
additional information about your investment options, such as
performance, investment strategies and risks. Specific information related
to the past performance and historical rates of return of the investment
options available under the plan (has/has not) been provided to you by
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[enter source, such as: your plan administrator, investment fund
provider]. (if applicable enter, If not provided to you, the information is
attached to this document.)
For options with returns that vary over time, past performance does not
guarantee how your investment in the option will perform in the future;
your investment in these options could lose money.
P
S

P

D
O

I

A

P

Name, and describe role of, affiliates or other parties with whom the
fiduciary adviser has a material affiliation or contractual relationship that
participated in the development of the investment advice program (if this
is an arrangement that uses computer models) or the selection of
investment options available under the plan.
U

P

I

Include a brief explanation of the following - What personal information
will be collected; How the information will be used; Parties with whom
information will be shared; How the information will be protected; and
When and how notice of the Fiduciary Adviser's privacy statement will be
available to participants and beneficiaries.

Should you have any questions about [enter name of Fiduciary Adviser] or
the information contained in this document, you may contact [enter name
of contact person for fiduciary adviser, telephone number, address].
[76 FR 66162, Oct. 25, 2011]

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