ARLINGTON, VA, (February 12, 2021) — The American Retirement Association, the nation’s leading advocacy organization of retirement plan professionals and plan sponsors, commends the decision by the Department of Labor to confirm that its exemption for investment advice fiduciaries will go into effect, as scheduled..
Released on Dec. 16, the new, principles-based prohibited transaction class exemption was intended to allow investment advice fiduciaries to offer a wide array of investment advice services in compliance with the Impartial Conduct Standards. This includes permitting investment advice fiduciaries to receive compensation as a result of providing fiduciary investment advice, including fiduciary investment advice to roll over a participant’s account in a workplace retirement plan to an IRA and other similar types of recommendations.
The current rules regarding the provision of investment advice date back decades, and the Labor Department has undertaken several attempts to update those guidelines, alongside comparable efforts by the Securities and Exchange Commission. The issue was of particular concern to advisors who support the retirement planning needs of workplace retirement plans, such as 401(k)s.
“We are pleased that the Department of Labor has decided to proceed with the new exemption, which contains important protections for plan participants and certainty for plan advisors who want to work with those participants.” noted Brian Graff, CEO of the American Retirement Association. “We look forward to the opportunity to work with the Labor Department as they develop guidance and continue to improve this exemption in the months ahead.”
About the American Retirement Association
The American Retirement Association, based in the Washington, D.C. area, is a non-profit professional organization established to empower retirement plan professionals who are dedicated to building a better retirement for Americans. The American Retirement Association is comprised of five premier retirement industry associations; the American Society of Pension Professionals & Actuaries (ASPPA), the American Society of Enrolled Actuaries (ASEA), the National Association of Plan Advisors (NAPA), the National Tax-deferred Savings Association (NTSA), and the Plan Sponsor Council of America (PSCA).
For more information, visit www.usaretirement.org.