Members of the securities industry are generally pleased with the Pension Protection Act of 2006 passed by Congress.
“I applaud Senate leaders for making this bill’s passage a priority before the August recess, ” shares Liz Varley, vice president and director of retirement policy for the Securities Industry Association. The SIA says that under the act:
o Financial-services firms can provide advice to 401(k) plan participants; the Secretary of Labor has been asked to issue a class exemption for advice provided to IRA account holders.
o Collective funds, such as a hedge fund, can accept additional assets from private pension plans without being subject to the Employee Retirement Income Security Act; now, private pension plans will have new opportunities to diversify their investments and manage risk.