The Department of Labor (the “DOL”) recently announced that it is further delaying until May 17, 2010 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 defined contribution plans, including 401(k) plans, and individual retirement account holders. (The final rule was described in the September 2, 2008 Alert.) The DOL, which had previously extended the effective date of the final rule from March 23 to May 22, and then to November 18, indicated that it is withdrawing the previously issued final rule and will be proposing a new rule. It is expected that the new proposed rule will contain significant changes from the previously issued final rule.
Alert November 24, 2009