DoL Won’t Allow Participant Advice until at least November 2009
The Department of Labor again delayed the effective date of the rule allowing the provision of investment advice to participant directed benefit plans. The rule will not become effective until November 18, 2009. The DoL indicated that comment letters raised concerns about mitigating the potential for investment adviser self-dealing.
OUR TAKE: Don’t make any business decisions assuming that this class exemption will become effective as written. We expect significant changes and further delays.