The Department is finalizing a
regulation under Employee Retirement Income Security Act (ERISA)
section 3(21)(A)(ii) and Internal Revenue Code (Code) section
4975(e)(3)(B) (Final Regulation). The Final Regulation will amend a
rule dating back to 1975 that defines when a person is a
“fiduciary” under ERISA and the Code by reason of providing
investment advice for a fee or other compensation regarding assets
of a plan or IRA (i.e., an investment advice fiduciary). The Final
Regulation will treat investment advisers as fiduciaries in a wider
array of advice relationships than the existing regulation. The
Department recognizes that in some instances, plan fiduciaries,
participants, beneficiaries, and IRA owners may receive
recommendations that should not be treated as fiduciary investment
advice. Accordingly, the final regulation describes examples of
communications that would not constitute fiduciary advice. These
examples focus on communications that the Department believes
Congress did not intend to cover as fiduciary “investment advice”
and that parties would not ordinarily view as communications
characterized by a relationship of trust or impartiality. None of
the examples apply where the adviser represents or acknowledges its
action as fiduciary under ERISA with respect to the
advice.
US Code:
29
USC 1135 Name of Law: Employee Retirement Income Security
Act
These are new information
collections resulting from the regulation.
$0
No
No
No
No
No
Uncollected
Chris Cosby 202
693-8540
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.