Participant Education vs. Advice

Plan sponsors can provide investment education to participants but are prohibited from providing investment advice. Crossing the line to providing plan investment advice could result in a violation of The Employee Retirement Income Security Act’s (ERISA) prohibited transaction rules.

Plan sponsors and benefits professionals regularly communicate with participants regarding the retirement plan. They need an understanding of where to draw the line to avoid moving into advice which is not always clear. This training walks committees through how to understand the difference between education and advice.

To download a copy of this L3 training material, please fill out the form.