Finalizing The ERISA Exemption For Investment Advice

Law360, New York (November 21, 2011, 1:32 PM EST) -- The U.S. Department of Labor on Oct. 25, 2011, issued a final rule implementing the Employee Retirement Income Security Act statutory exemption from the prohibited transaction rules for providers of investment advice to benefit-plan participants and individual retirement accounts, enacted under the Pension Protection Act of 2006.[1]

The final rule provides certain notable clarifications and modifications of the proposed regulations issued on Feb. 26, 2010.

Background

The PPA provides a statutory exemption from ERISA’s prohibited transaction rules to a fiduciary adviser who offers investment advice under...
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