June 28, 2022

Volume XII, Number 179

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June 27, 2022

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DOL Releases First Wave of FAQs on Fiduciary Rule

The guidance is the first of three waves of FAQs.

On October 27, the US Department of Labor (DOL) released a long-awaited frequently asked questions (FAQs) document regarding the fiduciary rule, as released on April 8, 2016 (the Rule), and related prohibited transaction exemptions (PTEs). The FAQs aim to answer 34 questions on the new exemptions, including the Best-Interest Contract Exemption, and amendments to existing exemptions, such as PTEs 75-1, 77-4, 80-83, 83-1, 84-24, and 86-128.

The DOL indicated that this is the first wave of FAQs that it will release about the Rule. Phyllis Borzi, the assistant secretary of labor at the DOL’s Employee Benefits Security Administration, confirmed that the DOL is aiming to release three sets of FAQs in total, with the second wave coming “very soon.”

Assistant Secretary Borzi asserted in a recent blog post that the FAQs are based on input that the DOL received from the financial services industry and others. She stated that the DOL hopes these FAQs will “head off misunderstandings that could lead to bad results for retirement savers, or financial services professionals.”

Morgan Lewis is evaluating the FAQs and their impact on our clients and the industry.

We are continuing to closely follow this Rule’s development and will provide updates as they occur. Catch up on our prior thought leadership covering the Rule to date:

Copyright © 2022 by Morgan, Lewis & Bockius LLP. All Rights Reserved.National Law Review, Volume VI, Number 302
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About this Author

Craig Bitman, Benefits and compensation lawyer, Morgan Lewis
Partner

Craig A. Bitman provides clients with a range of knowledge and skills in all aspects of employee benefits and executive compensation law. He not only serves as deputy practice leader, but also as leader of the practice’s Fiduciary Task Force and co-chair of the firm’s institutional investor practice. Craig also practices in the firm’s private investment funds practice and has served as a member of the firm’s Advisory Board.

212-309-7190
Daniel Kleinman, Morgan Lewis, Labor and employment lawyer
Partner

Daniel R. Kleinman advises businesses on the fiduciary responsibilities provisions (Title I) of the Employee Retirement Income Security Act (ERISA). He also counsels these clients on related tax, corporate, and securities laws in connection with the structuring and marketing of investment products (including private equity and hedge funds) and financial services to employee benefits plans. Additionally, Daniel handles issues related to the regulation of broker-dealers and investment advisers under US federal and state securities laws.

202-739-5143
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