Regulatory and Legislative

Public Hearing on Proposed Investment Advice Prohibited Transaction Exemption Set

The Department of Labor’s Employee Benefits Security Administration (EBSA) has announced a September 3 public hearing on its proposed prohibited transaction exemption for investment advice fiduciaries, guidance officially known as the Improving Investment Advice for Workers and Retirees exemption. The EBSA announcement notes that the guidance is intended to "provide relief that is broader and more flexible than the Department’s existing exemptions." Also, EBSA states that the “proposed exemption would also provide regulatory certainty and streamline requirements as investment advice fiduciaries could comply with one exemption for a variety of different types of transactions.”

In consideration of the coronavirus (COVID-19) pandemic, the public hearing will be virtual (conducted remotely), with no in-person presentations. Furthermore, testimony will be limited to those who submitted comments during the public comment period that began with the July 7, 2020, publication of the guidance in the Federal Register, and ended August 6, 2020. Requests to present testimony at the public hearing must be submitted to the agency by August 28, 2020.