Pioneer Announces New 408(b)(2) Compliance Tool
BOSTON, MA, February 9, 2012 -- Pioneer Investments announced today that it is offering Registered Investment Advisers a new tool to help them comply with a new regulation from the U.S. Department of Labor requiring that they provide 401k plan sponsors and other retirement fiduciaries with standardized disclosure about their business before they provide advisory or other services to retirement plans. Pioneer's new tool is a model Advisory Agreement designed to meet the requirements of the new regulation, known as rule 408(b)(2), and is a service available to Pioneer's clients and prospective clients.
The DOL announced on February 2, 2012 that the rule will take effect July 1, 2012. The rule requires RIAs and other covered service providers to provide written disclosure regarding their services, compensation, and fiduciary status to retirement plan clients in advance of entering into contracts. To develop the Advisory Agreement, Pioneer partnered with two leading firms in the area of retirement plan fiduciary responsibility, 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, 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. Laura Palmer, Senior Vice President, National Sales Manager at Pioneer, added that this service will help Pioneer's RIA clients meet their obligations under the new rules. "With our many years of experience supporting the RIA channel, we know that their first priority is to serve the needs of their clients. This service helps them simplify the compliance process, allowing them to focus more of their time on their clients," Palmer said.
Blaine F. Aikin, Chief Executive Officer of fi360®, said, "The ERISA 408(b)(2) compliant advisory agreement template from Pioneer Investments allows advisors to go well beyond regulatory compliance. It provides RIAs with opportunities to distinguish themselves in the marketplace. Fi360 is proud to have partnered with Pioneer and Drinker Biddle to help craft this important practice management tool."
The new rule requires "covered service providers" to make written disclosures in advance of entering into contracts for services. Most investment advisers will be required to comply with the regulation, and may be subject to penalties if they fail to comply. "The new 408(b)(2) disclosures are effective July 1, and if an adviser hasn't delivered its mandated disclosures by then, its relationships with ERISA plans are converted into prohibited transactions," said Fred Reish, a partner in Drinker Biddle & Reath's Employee Benefits & Executive Compensation Practice Group and Chair of the firm's Financial Services ERISA team. "For most advisers, the 'best practice' will be to make the disclosures in a new ERISA-specific service agreement," Reish said.
Advisors who are interested in more information on the Advisory Agreement or other Pioneer retirement plan thought leadership, tools and products should contact a member of Pioneer Investment Only & Retirement Group sales team at 888-743-4847 (option # 1).
Pioneer Investments does not provide legal advice. Pioneer has no ownership affiliation with either Drinker Biddle & Reath, LLP or fi360®.
About Pioneer Investments
Pioneer Investments is the trade name for Pioneer Global Asset Management S.p.A. and its subsidiaries, a global investment firm with offices in 27 countries and approximately $210 billion in assets under management as of December 31, 2011, of which approximately $60 billion was managed in the U.S. Founded in 1928, its flagship mutual fund, Pioneer Fund, is the third-oldest mutual fund in the U.S. Pioneer Investment Management USA Inc. is the North American operating subsidiary of Pioneer Global Asset Management S.p.A., which is a wholly-owned subsidiary of UniCredit S.p.A. Pioneer Investment Management, Inc. is one of the firm's U.S. investment advisory subsidiaries, and Pioneer Funds Distributor, Inc. is the firm's U.S. distribution subsidiary. For more information, please visit http://us.pioneerinvestments.com/
About Drinker Biddle & Reath
Drinker Biddle and Reath LLP leads complex and sophisticated business transactions and litigates many of the most important legal challenges for clients such as substantial businesses, healthcare providers, money and asset managers and investors, ranging from mid-sized enterprises to Fortune 500 companies.
About fi360®
fi360® offers a full-circle approach to investment fiduciary education, practice management, and support that has established the firm as the go-to source of investment fiduciary insights. The firm's mission is to promote a culture of fiduciary responsibility and improve the decision-making processes of investment fiduciaries through Training, Tools, and Resources in support of that mission.
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