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DOL Opens RFI Window on Brokerage Windows

The U.S. Department of Labor has published a request for information on the use of brokerage windows, self-directed brokerage accounts and “similar features” in 401(k)-type plans. 

“We promised employers and other plan sponsors and fiduciaries that we would look into the use of brokerage window features,” said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi in a press release announcing the RFI. “Our goal in issuing this RFI is to determine whether, and to what extent, regulatory standards or other guidance concerning the use of brokerage windows may be necessary to adequately protect participants’ retirement savings.” 

The RFI asks questions concerning brokerage windows, including: 
• the scope of investment options typically available through a window; 
• demographic and other information about participants who commonly use brokerage windows; 
• the process of selecting a brokerage window and provider for a plan; 
• the costs of brokerage windows; and 
• what kind of information about brokerage windows and underlying investment options typically is available and disclosed to participants. 

Comments are due by Nov. 19, 2014.

The RFI was published in the Aug. 20 edition of the Federal Register; it can also be viewed at https://federalregister.gov/a/2014-19832. The RFI contains instructions on how to submit public comments electronically by email to [email protected] or through the federal eRulemaking portal. Written comments may also be sent to the U.S. Department of Labor, Office of Regulations and Interpretations, Employee Benefits Security Administration, N-5655, 200 Constitution Ave. NW, Washington, DC 20210, Attn: Brokerage Window RFI.