• Department of Labor Issues Final Service Provider Fee Disclosure Regulations
  • February 29, 2012 | Authors: Rebecca F. Alperin; Tracy A. Vitols
  • Law Firms: Hinckley, Allen & Snyder LLP - Boston Office ; Hinckley, Allen & Snyder LLP - Providence Office ; Hinckley, Allen & Snyder LLP - Boston Office
  • Covered service providers that expect to receive $1,000 or more in compensation and provide certain fiduciary or registered investment advisory services, make available plan investment options in connection with brokerage or recordkeeping services, or otherwise receive indirect compensation for providing certain services to a covered retirement plan (defined below) have until July 1, 2012 to comply with newly issued final regulations published by the Department of Labor ("DOL") February 2, 2012 (the "Regulations"). Under the Regulations, these "covered service providers" are required to disclose all fee information, including hidden fees, relating to the services they provide. The purpose of the Regulations is to better equip plan fiduciaries in determining the reasonableness of fees charged by service providers.