Compliance June 6, 2011

ERIC Supports Electronic Disclosures

June 6, 2011(PLANSPONSOR.com) - In a letter to the Department of Labor (DoL), the ERISA Industry Committee (ERIC) explained its belief that electronic disclosures will improve efficiencies at every step in a retirement plan. 
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Responding to the DoL’s request for information, ERIC laid out the following arguments in favor of electronic disclosure in employee benefit plans: 

  • Cost-efficiency – Providing communications electronically reduces the cost of preparation and distribution; 
  • Time-efficiency – Electronic communications get to recipients faster than paper communications, the time difference ranges from a few days to more than two weeks; 
  • Interactive capability – Interactive features make many electronic communications more user-friendly than paper communications;  
  • Privacy – A secure electronic system offers more privacy protection than paper communications; 
  • Keeping track of updates – A well-managed Web site can alleviate the burden of saving paper documents and keeping personal files up to date, and provide immediate access to relevant documents; and 
  • Environment – Use of electronic media saves paper. 

ERIC added that the existing requirement to obtain affirmative consent unless access to the applicable electronic medium is an “integral part of [the participant’s] duties” is too restrictive.  The organization recognizes that not everyone has access to the Internet, but believes the safe harbor can be expanded to provide sufficient protection for individuals who do not wish, or are not able, to receive communications electronically. 

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The DoL’s request for information was published in the Federal Register on April 7 (see “DoL Seeks Comments on Electronic Disclosure”).  Comments are being accepted until June 6.  

ERIC’s letter is available here.  

  

-Nicole Bliman 

Products June 6, 2011

Vanguard Launches Canadian Investment Business

June 6, 2011 (PLANSPONSOR.com) - Investment management company Vanguard has established Vanguard Investments Canada Inc., which will enable them to reach Canadian investors through investment advisers.
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The Canadian operation, led by Atul Tiwari, will have its head office in Toronto. Tiwari, formerly an executive with BMO Financial group and past President/CEO of Harris Insight Funds, was instrumental in bringing exchange-traded funds (ETFs) to the Canadian market in 2009. He has more than twenty years of experience in the financial services industry, Vanguard reports. 

 “Investment advisers in Canada are experiencing a period of change as fee-based practice models continue to take hold, and advisers and their clients are squarely focused on reducing costs and risks,” said Tiwari. “We will leverage the knowledge and experience Vanguard has gained from serving investment advisers in the U.S. for nearly a decade … to provide sound solutions for Canadian advisers and their clients.”  

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Details about Vanguard’s product line-up will be announced after it has submitted a preliminary prospectus to the Canadian Securities Regulators in compliance with related laws.  

  

-Sara Kelly 

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