SEC Registration Requirements for Certain 401(k) Plans with Brokerage Windows

The SEC in a Q & A (126.41) indicates that certain 401(k) plans that allow participants to invest in company stock through the plan’s brokerage window may be required to register.

Document Excerpt

Question 126.41

Q: A company sponsors a 401(k) plan that does not offer an employer securities fund in which employee contributions may be invested. The 401(k) plan permits both employer and employee contributions to be invested through a self-directed “brokerage window.” If the 401(k) plan does not prohibit employee contributions to be invested in employer securities through the “brokerage window,” would this involve an offer of employer securities requiring Securities Act registration?


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