Steve D. Rosenberg, Esq. The Wagner Law Group provides insight on the relationship between participant education and litigation defense.

In this publication, the SEC states the “right questions” investors should have answers to before they invest.

The SEC explains the basics of mutual fund investing, how mutual funds work, what factors to consider before investing, and how to avoid common pitfalls.

The SEC educates individual investors about mutual fund shareholder reports.

404a-5 states “The information required to be prepared by the plan administrator for disclosure under this section shall be written in a manner calculated to be understood by the average plan participant.”

INVESTMENT COMPANY ACT OF 1940

This Act requires companies to disclose their financial condition and investment policies to investors when the investment is sold and on a regular basis.

This Act requires periodic reporting of information by companies with publicly traded securities.

This Act requires the disclosure of important financial information.

“Issues relating to the circumstances under which information provided to participants and beneficiaries may affect a participant’s or beneficiary’s ability to exercise independent control over the assets in his or her account for purposes of relief from fiduciary liability under ERISA section 404(c) are beyond the scope of this interpretive bulletin. Accordingly, no inferences should be drawn regarding such issues. See 29 CFR 2550.404c–1(c)(2).”

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“The participant or beneficiary is provided or has the opportunity to obtain sufficient information to make informed decisions with regard to investment alternatives available under the plan, and incidents of ownership appurtenant to such investments.”