DOL Proposes Revamped Rule on Investment Advice
By: Catherine S. Bardsley, Mark J. Duggan, John J. Nestico, David Pickle, William A. Schmidt, William P. Wade, Kristina M. Zanotti.
The U.S. Department of Labor (“DOL”) has issued a new proposed regulation (the “Proposal”) in the most recent installment of its ongoing efforts to implement the statutory exemption for participant advice added to ERISA and the Internal Revenue Code as part of the Pension Protection Act of 2006 (“PPA”). The Proposal, which deals solely with advice to plan participants (as opposed to plan sponsors), would replace the final regulation and related class exemption regarding participant advice that was issued in January 2009. Notably, the Proposal would cut back significantly on what would have been permitted under that regulation and class exemption, particularly as it would have applied to advice to IRAs.
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