The May 7 guidance document enumerated conditions in which investments in self-directed brokerage accounts or brokerage windows could be considered designated investment alternatives under ERISA. If so, such investments would be subject to greater monitoring of the investments and greater fiduciary responsibility for the investments by plan executives.
If this rule becomes law plan sponsors will need to rethink their position on offering the brokerage window option in their plan. It will increase plan sponsors responsibilities and liabilities. If the owner wants this option for himself/herself they must offer it to all plan participants.
Please comment or call to discuss how this affects you and your company sponsored retirement plan.