Reminder: New ERISA Section 408(b)(2) Regulation

June 27, 2012

On July 1, 2012, new U.S. Department of Labor regulations (the “Regulations”) affecting managers to (i) private investment funds that are subject to Title I of ERISA and (ii) separate accounts for ERISA-covered pension plans will become effective. In order to comply with ERISA, the Regulations will require such managers to make certain disclosures with respect to their compensation to plan fiduciaries.

If your firm is subject to the Regulations and it has not addressed the requirements of the Regulations, we recommend providing a guide to the fiduciaries of your plan investors that (i) directs the fiduciaries to the required disclosures in existing fund or account documentation and (ii) if necessary, provides any additional disclosure required by the Regulations. The guide should be delivered to fiduciaries of plan investors in advance of the July 1 effective date.

Our February 22, 2012 client memorandum, provides greater detail on the disclosure requirements of the Regulation.

If you have any further questions on the application of the Regulations to your firm, please contact one of the attorneys listed below.