Speaking on a wide range of issues at last week’s Plan Sponsor Council of America conference, EBSA head Phyllis Borzi commented on a number of pending issues near and dear to the hearts of DC advisors and providers, including fee disclosure, lifetime income illustrations in participant statements and the much-anticipated redefinition of fiduciary rule.
Chiding the industry for not following the letter or the spirit of the fee disclosure requirements, Borzi said that many providers were giving clients a laundry list of fees and a range of services, which is not what was intended. Instead, providers should be supplying specific fees for specific services.
Borzi indicated that an agency publishes an advance notice of proposed rule making (ANPRM) when either there’s a problem and the agency is not sure that regulations are the solution, or they are considering a regulation. In the case of the ANPRM for a lifetime income illustration, both are true.
Finally, echoing her statements at last week’s FSI conference, Borzi said that the redefinition of fiduciary rule will not be ready next month, as work on prohibited transaction exemptions continues.
