DOL Withdraws Proposed Fiduciary Rule
On September 19, the Department of Labor (“DOL”) announced the withdrawal of its proposed regulation on the definition of a fiduciary under ERISA § 3(21)(A). Originally proposed last October, the rule drew over 250 comments and was the subject of hearings held before the DOL and the U.S. House Education and Workforce Committee. Many commentators expressed concern that the proposed rule would have unintended consequences. The DOL has indicated that it will re-propose the rule in early 2012 after additional input, review and consideration.
DOL Proposed Fee Disclosure Rule in Final Stages
On July 22, the DOL’s final rule to amend the regulations under ERISA § 408(b)(2) concerning reasonable arrangements between a plan and a party in interest to add additional fee disclosure requirements was submitted to the Office of Management and Budget for final review. The DOL has announced that the rule will become effective April 1, 2012.