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DOL/EBSA

RIN: 1210-AB35

Publication ID: Spring 2011

Title: Statutory Exemption for Provision of Investment Advice
Abstract: Section 601 of the Pension Protection Act (Pub. L. 109-280) amended ERISA by adding new section 408(b)(14) and 408(g). Section 408(b)(14) is a prohibited transaction exemption that permits the provision of investment advice to participants or beneficiaries of certain individual account plans if the investment advice is provided under an "eligible investment advice arrangement," as defined in section 408(g). In order to qualify as an "eligible investment advice arrangement," the arrangement must either provide that any fees received by the adviser do not vary depending on the basis of any investment options selected, or use a computer model under an investment advice program that meets the criteria set forth in section 408(g) in connection with the provision of investment advice. Further, with respect to both types of advice arrangements, the investment adviser must disclose to advice recipients all fees that the adviser or any affiliate is to receive in connection with the advice. Section 408(g) requires that the computer model which serves as the basis for an eligible investment advice arrangement be certified by an "eligible investment expert" in accordance with rules prescribed by the Secretary of Labor. Section 408(g) also directs the Secretary of Labor to issue a model form for the required disclosure of fees.
Agency: Department of Labor(DOL)	Priority: Economically Significant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Final Rule Stage
Major: Yes	Unfunded Mandates: No
CFR Citation: 29 CFR 2550
Legal Authority: 29 USC 1108(g) 29 USC 1135 PL 109-280, sec 601(a) Pension Protection Act of 2006 ERISA sec 408(g) ERISA sec 505

Legal Deadline: None

Timetable:

Action	Date	FR Cite
NPRM	03/02/2010	75 FR 9360
NPRM Comment Period End	05/05/2010
Final Action	08/00/2011

Regulatory Flexibility Analysis Required: Undetermined	Government Levels Affected: None
Federalism: No
Included in the Regulatory Plan: No
RIN Data Printed in the FR: No
Related RINs: Related to 1210-AB13
Agency Contact: Fred Wong Senior Pension Law Specialist Department of Labor Employee Benefits Security Administration 200 Constitution Avenue NW., FP Building, Room N-5655, Washington, DC 20210 Phone:202 693-8500 Fax:202 219-7291