• Investment Fund Fee Reporting—Responding to Plan Investor Fee Disclosure Requests
  • August 24, 2010 | Authors: Edward E. Bintz; Douglas S. Pelley; Barbara Y. Yuen
  • Law Firm: Arnold & Porter LLP - Washington Office
  • Many investment funds have recently received requests from ERISA plan investors asking for a range of information relating to fees paid to fund service providers. Plan administrators are making these requests in order to allow them to complete Schedule C to Form 5500, which now requires expanded fee reporting, including the reporting of “indirect compensation” paid by a plan. The new Schedule C reporting rules apply to fees paid to investment fund service providers (as “indirect compensation”), even if the fund’s assets do not constitute “plan assets” for purposes of ERISA. Funds that qualify as venture capital operating companies or real estate operating companies under ERISA, however, are exempt. This is the first Form 5500 cycle for which the expanded fee disclosure is required on Schedule C, so many fund managers are wrestling with the complexity of the new rules and inevitable difficulties in applying them to their particular situations. www.arnoldporter.com