Only Trustees really need to see the prospectuses
Regulations set out by the SEC and by the DOL require that the purchaser of a mutual fund receive the prospectus of the fund purchased. Remember that in a participant-directed retirement plan, the participant is making the purchase decision, and must receive the prospectus. In a Trustee-directed portfolio investing in a mutual fund, the Trustee is making the purchase decision. Only in this latter instance can delivery be limited to the Trustee.
Many Fiduciaries think prospectus delivery to participants is a waste given the complexity of the document and the failure of almost all participants never to read them. Consequently, they do not provide for their distribution-a huge mistake!
The Plan Fiduciary must also receive the prospectus even if the participant is making the investment decision within his account. How else could the Fiduciary affect proper oversight without seeing the prospectus.