- with readers working within the Retail & Leisure industries
Earlier this week, the SEC’s Division of Investment Management and Division of Corporation Finance recently provided guidance regarding pooled employer plans (PEPs), which are defined contribution retirement plans that permit multiple, unrelated employers to join together in a single plan. With this guidance, the Staff has addressed some of the questions that have arisen since Congress established PEPs with the enactment of the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019.
In its Staff Statement Regarding Pooled Employer Plans, the Division of Investment Management provided its views regarding the applicability of the “single trust exclusion” in Section 3(c)(11) of the Investment Company Act to pooled employer plans, as well as the applicability of Securities Act Rule 180 to interests in collective investment trusts maintained by a bank and issued to those pooled employer plans that cover self-employed individuals. The Division of Corporation Finance updated its Corporation Finance Interpretations (CFIs) to address the availability of the Section 3(a)(2) exemption for the offer and sale of interests or participations in a “single trust fund,” as well as the availability of Form S-8 for the offer and sale of issuer securities to participants in a PEP, under certain conditions.
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