The Department of Labor (the “DOL”) recently announced that it is further delaying until November 18, 2009 the effective date of a final rule 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 401(k) plans and individual retirement account holders (the “Investment Advice Regulation”). (The Investment Advice Regulation was described in the September 2, 2008 Alert.) The DOL, which had previously extended the effective date from March 23 to May 22, indicated in its announcement that additional time was needed to consider the legal and policy issues raised by comments on the Investment Advice Regulation. It is expected that significant changes could be made to the Investment Advice Regulation during this period, including through possible legislative action.
Alert May 26, 2009