The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) is withdrawing the final rule on the provision of investment advice under the Employee Retirement Income Security Act's prohibited transaction provisions.
The department's notice withdraws a January 2009 final rule that implemented a statutory prohibited transaction exemption under the Pension Protection Act (PPA), and provided an additional administrative class exemption.
The department says it decided to withdraw the rule based on public comments that raised sufficient doubts as to whether the conditions of the final rule and the class exemption associated with the rule could adequately protect the interests of plan participants and beneficiaries.
The department delayed the final rule several times, the latest pushing back the applicability and effective dates of the final rule until May 17, 2010. Now the dpeartment is withdrawing the rule completely.
The department says it intends to publish separately a proposed rule that conforms to the PPA statutory exemption relating to investment advice.
The notice of withdrawal of the investment-advice rule is published in the November 20, 2009 edition of the Federal Register.