The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) has further extended the applicability and effective dates of the final rule on investment advice under the Pension Protection Act. The new effective date is November 18, 2009.
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Get Your Report Now!On January 21, 2009, the department published a final rule governing the provision of investment advice under the Employee Retirement Income Security Act's prohibited transaction provisions.
On March 20, the department extended the applicability and effective dates of the final regulation from March 23 to May 22. The department has since determined that additional time is necessary to consider the legal and policy issues raised by comments on the final rule.
The PPA amended the Employee Retirement Income Security Act by adding a new prohibited transaction exemption that allows greater flexibility for participants of 401(k) plans and individual retirement accounts to obtain investment advice. On January 21, 2009, the department published the final rule.
The department said it decided to postpone for 60 days the effective and applicability dates of the final rule to give it time to review legal and policy issues raised by many of the 26 public comment letters received. The department extended the effective and applicability dates to May 22, 2009.