When it comes to the fee disclosure regulations, I was always troubled by the frequent delays by the Department of Labor in implementing the Section 408(b)(2) fee disclosure regulations. Many plan providers and retirement industry trade groups wanted the delay because they said that many plan providers weren’t ready for the change and because the final rule wasn’t published. Well I understand about the desire to push back the effective date because the final rule wasn’t published but the excuse that plan providers aren’t ready was hogwash.
Hogwash? Well, you heard me (except this is written). The reason I find that excuse is hogwash because I am convinced that if you push back Section 408(b)(2) implementation until June 2017, you still will have providers not ready. How do I know? I have received calls from several plan providers within the last few days asking me about Section 408(b)(2) and whether it applies to them. Yes, I did. This is after a couple of years of delays in its implementation and you have providers who still didn’t know until now that they have to disclose their fees to plan sponsors in 10 weeks.
So no matter when you will have the implementation of fee disclosure, you will still have plan providers that will still be unaware that it applies to them.