In a move that NewRiver has long anticipated, the Department of Labor (DoL) has authorized the use of a summary prospectus for 404c retirement plans. This endorsement will enable retirement plan providers to take full advantage of the cost savings associated with the Securities and Exchange Commission (SEC) rule. In a recent Employee Benefits Security Administration Bulletin, the DoL states, âThe Department believes that the delivery of a Summary Prospectus by an identified plan fiduciary or designee to participants and beneficiaries satisfies the requirements of the ERISA section 404(c) regulations because the required contents of the Summary Prospectus provide key information about a mutual fund that will assist participants and beneficiaries in making informed investment decisions.â
âThe numbers clearly translate into overall success for the SEC, fund companies, broker/dealers, retirement plan providers and the individual investors who all will benefit from the Summary Prospectus Rule,â said Russ Planitzer, President and CEO of NewRiver.
âSince we started tracking the adoption numbers back in March of this year, weâve seen a steady acceleration of fund companies filing online prospectuses. With the DoL now onboard, the industry has spoken: financial firms want smaller documents that are printed on demand rather than stored as inventory.â