The Proposed Exemption Procedure Regulation amendment would revise the Department’s procedure for granting prohibited transaction exemptions, which was last updated in 2011 (29 CFR 2570.30 et seq.). While some of the revisions are designed to improve the readability of the procedure, the majority reflect changes in the Department's exemption application review processes that have occurred since the Department last updated the exemption procedure regulation in 2011. Specifically, among other things, the proposed amendment would: (1) clarify the types of information and documentation required for a complete application; (2) revise the definitions of a qualified independent fiduciary and qualified independent appraiser in order to ensure their independence; (3) clarify the content of specific reports and documents applicants must submit in order to ensure that the Department receives sufficient information to make the requisite findings under ERISA section 408(a) to issue an exemption; (4) update various timing requirements to ensure clarity in the application review process; (5) clarify items that are included in the administrative record for an application and when the administrative record is available for public inspection; and (6) expand opportunities for applicants to submit information to the Department electronically.

The proposed amendment was published on March 15, 2022, with a 30-day comment period that was scheduled to expire on April 14, 2022. On April 8, 2022, the Department extended the comment period for an addition 45 days (until May 29, 2022) to provide interested parties with a full opportunity to comment. Currently, the Department is engaged in the process of reviewing comments as they are submitted.