Chapter 6 - Participant Investment Direction Flashcards
1
Q
Frequency Rule
A
The frequency rule requires that the opportunity to give investment instructions must be available with a frequency that is appropriate to the volatility of the investment. The frequency rule applies to all investment options intended to comply with ERISA §404(c).
If the plan fails to satisfy the volatility requirement with respect to a particular investment option, ERISA §404(c) relief is not available with respect to that option. However, ERISA §404(c) relief may still be available with respect to the other investment options for which the frequency requirement is satisfied, so long as the other requirements of ERISA §404(c) are satisfied.
