DOL Finalizes Investment Advice Regulations and Related Class Exemption under the PPA Subject to Potential Review and Extension by Obama Administration

On January 16, 2009, the Department of Labor (DOL) announced the publication of the final regulations and a prohibited transaction class exemption concerning the provision of investment advice to participants in participant-directed individual account plans such as 401(k) plans and individual retirement accounts. The final regulations essentially adopt the proposed rule, released August 22, 2008, which implemented the new statutory exemption for investment advice added to the Employee Retirement Income Security Act of 1974 as amended (ERISA), by the Pension Protection Act (PPA).

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