Wednesday, October 24, 2012

Update - DOL Expects to Re-Prepose Fiduciary Rule in Early 2013

On October 23, 2012, the United States Department of Labor's ("DOL") Assistant Secretary of Labor for the Employee Benefits Security Administration ("EBSA"), Phyllis Borzi, announced that DOL expects to issue its re-proposal of its "fiduciary rule" early next year. DOL proposed the regulation, to revise and expand the definition of the term “fiduciary” under Section 3(21)(A) of ERISA in October 2010. After concerns about the proposed regulation as drafted were raised, DOL announced in September 2011 that it would withdraw and re-propose the rule. Borzi previously said that practitioners should expect the regulation to address several issues that some felt were unclear in the initial proposal, including drawing a brighter line between participant advice and education.