Pioneer’s tool is a model Advisory Agreement designed to meet the requirements of the 408(b)(2) regulation from the Department of Labor (DoL), which says advisers must provide 401(k) plan sponsors and other retirement fiduciaries with standardized disclosure about their business before they provide advisory or other services to retirement plans. The rule will take effect July 1, 2012 (see “DoL Issues Final Rule on 401(k) Disclosure”).
To develop the Advisory Agreement, Pioneer partnered with Drinker Biddle &Reath LLP, a national law firm; and fi360, a specialist in investment fiduciary responsibility.
“We have found that retirement plan advisers generally understand what 408(b)(2) represents, but find it a challenge to incorporate the requirements into their own practice,” says Jamie Axford, senior vice president and director of business development, Investment Only and Retirement Group at Pioneer. “This model Advisory Agreement provides advisers with an easy-to-understand solution for meeting their obligations under the new rule.”