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Compliance Corner

Retirement Updates

DOL Announces They Will Proceed with Investment Advice Exemption

On February 12, 2021, the Employee Benefits Security Administration (EBSA) announced that an exemption for investment advice fiduciaries, “Improving Investment Advice for Worker & Retirees,” would go into effect, as scheduled, on February 16, 2021. This rule was finalized under the Trump administration in December 2020. However, the Biden administration announced that they would review certain finalized and pending rules. They have seemingly completed their review of this rule and have allowed it to go into effect.

Among other protections, the exemption includes a best interest standard of care for fiduciary recommendations regarding rollovers from retirement accounts subject to ERISA. (We discussed this rule in the December 22, 2020, edition of Compliance Corner.)

The EBSA anticipates publishing related guidance in the coming days. Importantly, EBSA states that the temporary enforcement policy stated in Field Assistance Bulletin 2018-02 remains in place through December 31, 2021. (See Compliance Corner article “DOL Releases Field Assistance Bulletin Following Fiduciary Rule Revocation” from May 15, 2018, for additional information on FAB 2018-02.)

Plan sponsors should be aware of these developments. We will continue to monitor and communicate additional guidance once issued.

DOL News Release »

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