Newsflash: Department of Labor Opens the Door to Questioning Brokerage Windows Under "401(k)" Plans

August 27, 2014

A request for information ("RFI") by the U.S. Department of Labor ("DOL") was published on August 21, 2014 regarding the use of so-called "brokerage windows" under retirement plans, such as many Section 401(k) plans, that allow participants (and beneficiaries) to direct the investment of their retirement accounts. In general terms, a brokerage window under a plan allows a plan participant to direct trading in a potentially wide variety of, among other things, stocks, bonds, mutual funds and other exchange-traded funds, and sometimes alternative investments as well. The RFI could signal an effort on the part of the DOL to promulgate additional regulatory requirements or other guidance applicable to the use of brokerage windows, with possible impact on plan sponsors that may offer windows under their plans and also on financial institutions that provide or facilitate the windows.

Read "Newsflash: Department of Labor Opens the Door to Questioning Brokerage Windows Under "401(k)" Plans."