Alert February 17, 2009

DOL Final Regulation and Exemption for Investment Advice is Delayed

The Department of Labor (the “DOL”) recently published a final regulation under Sections 408(b)(14) and 408(g) of the Employee Retirement Income Security Act of 1974, addressing the provision of investment advice to participants in Section 401(k) plans and individual retirement account holders (the “Investment Advice Regulation”).  (The Investment Advice Regulation was originally proposed in 2008 and such proposal was described in the September 2, 2008 Alert.)  The Investment Advice Regulation was scheduled to be effective on March 23, 2009; however, the DOL has issued a notice of postponement of the effective date in accordance with a directive issued by the new administration.  The notice of postponement reopens the comment period on the Investment Advice Regulation until March 6, 2009 and delays the effective date until May 22, 2009.  It is expected that there could be significant changes made to the Investment Advice Regulation during this period.