FINRA Exempts ERISA Compliant Materials from Filing Requirements
FINRA has indicated that investment-related information provided pursuant to ERISA Rule 404a-5 need not be filed with FINRA. The Rule, which was adopted by the Department of Labor in October 2011, requires the disclosure to participants of certain plan and investment-related information including fund performance information. FINRA has agreed that such materials need not be filed or comply with the otherwise applicable content rules (2210 and 2211) if such material complies with the content standards of the Rule. However, FINRA does warn that firms must continue to file such materials if they contain other product promotional materials that fall outside the Rule. FINRAâ€™s position is consistent with a recent SEC no-action letter under Rule 482.
OUR TAKE: Firms must make sure that Rule 404a-5 material only contains Rule 404a-5 required information to avoid filing.