SEC Staff Allows 403(b) and 457(b) DoL Disclosure to Qualify for Fund Marketing Rules
The staff of the Division of Investment Management has issued no action relief to allow investment-related disclosure information about plan investment options for non-ERISA 403(b), 457(b), and certain other non-ERISA plans. Without no-action relief, such disclosure could violate Rule 482, which governs fund advertising and performance presentation. The staff has previously offered similar guidance for investment information for ERISA plans. The no-action relief requires the underlying investment vendors to provide the required fee and performance information at least annually, provide performance information quarterly, and designate a contact person for more information.
OUR TAKE: This is helpful clarification for 403(b) and 457(b) vendors and resolves a potential conflict between two regulatory schemes.