US Department of Labor announces online hearing on proposed retirement security rule, related proposed exemption amendments beginning Dec. 12
WASHINGTON – The U.S. Department of Labor announced today that its Employee Benefits Security Administration will hold an online hearing beginning Dec. 12 on the agency’s Notice of Proposed Rulemaking, “Retirement Security Rule: Definition of an Investment Advice Fiduciary,” and related proposed prohibited transaction exemption amendments, published in the Federal Register on Nov. 3, 2023.
If adopted as proposed, the rule would define who is an investment advice fiduciary under the Employee Retirement Income Security Act of 1974 as a result of giving investment advice to retirement plan participants and individual retirement account owners, among others. The proposed amendments seek to make exemption conditions more uniform and protect retirement investors better.
The proposals would protect investors saving for retirement by requiring trusted advice providers to adhere to high standards of care and loyalty when making investment recommendations and avoid recommendations that favor their financial interests at the expense of the investors.
“The hearing will provide interested parties with a full opportunity to provide important public input that will inform the Department of Labor’s next steps in the rulemaking process for the proposal,” said Assistant Secretary for Employee Benefits Security Lisa M. Gomez.
The online hearing will be held on Dec. 12 and Dec. 13, 2023, beginning at 9 a.m. EST. If necessary, the department will continue the hearing on Dec. 14, 2023, at 9 a.m. EST. Those interested in testifying at the hearing must submit a request to the department at www.regulations.gov on or before Nov. 29, 2023. The hearing notice with additional details about testifying is posted on the EBSA website at www.dol.gov/ebsa/retirement-security and will be published in the Federal Register. The hearing will be transcribed and EBSA will provide the transcript on www.dol.gov/ebsa/retirement-security.
The proposed rule and proposed exemption amendments contain a 60-day comment period, scheduled to close on Jan. 2, 2024. The department encourages plan officials, plan participants, IRA owners, investment advice providers and other interested parties to submit comments on the proposed rule and proposed exemption amendments during the comment period, and to participate in the virtual public hearing.