ERISA Practitioners Provide Testimony to ERISA Advisory Committee on Self-Directed Brokerage Accounts in Defined Contribution Plans


Summary

This practice note discusses the use of brokerage windows (also known as self-directed brokerage accounts) (Brokerage Windows) in participant-directed defined contribution plans governed by the Employee Retirement Income Security Act of 1974, as amended (ERISA), the current regulatory guidance for plan fiduciaries who establish Brokerage Windows for their plan participants and beneficiaries, with emphasis on the testimony to the 2021 Advisory Council on Employee Welfare and Pension Benefit Plans (ERISA Advisory Council) regarding whether participants and beneficiaries with access to Brokerage Windows are adequately informed and protected under existing ERISA rules regarding participant disclosure.