US Department of Labor’s DOL Employee Benefits Security Administration EBSA released a proposed amendment and restatement of the Voluntary Fiduciary Correction Program VFCP, along with a proposed amendment to the Prohibited Transaction Exemption PTE 2002-51.
On July 27, 2022, the U.S. Department of Labor (the "DOL") issued notice of a proposed amendment (the "Proposed Amendment") to Prohibited Transaction Class Exemption 84-14.
Wednesday, February 17, 2021
Investment Adviser Considerations: The Department of Labor’s Prohibited Transaction Exemption and Its Impact on Recommendations to Plans, Participants and IRAs (Part 4
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On December 18, 2020, the DOL issued its final prohibited transaction exemption (PTE) that will allow conflicted compensation resulting from nondiscretionary fiduciary investment advice. The PTE is titled “Improving Investment Advice for Workers & Retirees.” The citation is Prohibited Transaction Exemption 2020-02. (https://www.govinfo.gov/content/pkg/FR-2019-07-12/pdf/2019-12208.pdf) The exemption became effective on February 16, 2021.
The exemption and the associated expansion of the definition of fiduciary advice will have the greatest impact on recommendations by investment advisers and broker-dealers (1) to retirement plan participants to take rollovers to IRAs with the advisors, and (2) to IRA owners about how to invest in their IRAs. My last article,