Regulatory and Legislative

Investment Advice Fiduciary Class Exemption Published

Appearing in the December 18, 2021 Federal Register was Department of Labor Employee Benefits Security Administration (EBSA) Prohibited Transaction Exemption (PTE) 2020-02, which will provide guidance to investment advisors who counsel retirement and other investors. This guidance completes a process that began with 2016 regulations and exemptions issued under the Obama administration. Those regulations and exemptions were subsequently vacated in 2018 by a federal appeals court. 

PTE 2020-02 maintains the impartial conduct standard that has been in effect since 2018, under which those who advise retirement and retail investors are to adhere to several principles:

  • receive only reasonable compensation;
  • make no misleading statements in the course of their advising; and
  • act in the client’s best interest.

With today’s publication of the guidance, PTE 2020-02 becomes effective February 16, 2021.

Regulatory and Legislative

ESG Final Rule Published in Federal Register

ESG Final Rule Published in Federal Register

The DOL’s final rule titled Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights has been published in the Federal Register.