In January 2012, the Department of Labor (“DOL”) issued a final regulation under Section 408(B)(2) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), which requires a “covered service provider” to provide the responsible plan fiduciary with certain disclosures concerning fees and services provided to certain of their ERISA governed plans. This regulation is commonly known as the service provider fee disclosure rule and is referred to herein as the “408(B)(2) Regulation”. To be subject to the 408(B)(2) Regulation, the covered service provider must anticipate receiving $1,000 or more in compensation over the life of the agreement or arrangement with the plan. Under the 408(B)(2) Regulation, a prohibited transaction could occur if a covered service provider fails to provide the responsible plan fiduciary with this information.

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