401(k) participants may see plain-English summary prospectus under new SEC rule

Mutual funds may give investors a plain-English summary prospectus, rather than a full prospectus, under a final SEC rule effective March 31, 2009. The rule ultimately may change the form and content of fund information passed through to participants in many 401(k), 403(b) and 457 plans. Once summary prospectuses become available, plan sponsors will need to re-evaluate "pass-through" disclosure obligations under ERISA. Those rules currently are in flux while the Obama administration reviews fee disclosure rules proposed by the Department of Labor last year.  (Select News, 6 Feb 2009)

• Full text of final rule (Fed Reg, 26 Jan 2009)

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