DOL Issues Final Rule on Investment Advice . . . Again (K&L Gates)

It’s been a long time coming, but the Department of Labor has finally reached a decision on how to implement the statutory exemption from the prohibited transaction provisions of ERISA for investment advice to participants. The regulation, issued on Oct. 25, applies primarily to ERISA-covered plans, but also to IRAs and other plans that are subject to the prohibited transaction provisions. The goal of this regulation was a challenging one: how to best make investment advice available to those who needed it, without substantially increasing the chance that unfair or ill advice would be given. Whether the ruling effectively balances these concerns will ultimately be decided by the marketplace; in the meantime, you can find a detailed overview of the rule and its ramifications in the story below.