[Federal Register Volume 74, Number 22 (Wednesday, February 4, 2009)]
[Proposed Rules]
[Pages 6007-6008]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-2296]


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DEPARTMENT OF LABOR

Employee Benefits Security Administration

29 CFR 2550

RIN 1210-AB13


Investment Advice--Participants and Beneficiaries

AGENCY: Employee Benefits Security Administration, Labor.

ACTION: Notice of proposed extension of effective date and 
applicability date; request for public comments on legal and policy 
questions relating to the final rule.

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SUMMARY: Consistent with the memorandum of January 20, 2009, from the 
Assistant to the President and Chief of Staff, entitled ``Regulatory 
Review,'' this document proposes to extend for 60 days the effective 
and applicability dates of final rules under the Employee Retirement 
Income Security Act, and parallel provisions of the Internal Revenue 
Code of 1986, relating to the provision of investment advice to 
participants and beneficiaries in individual account plans, such as 
401(k) plans, and beneficiaries of individual retirement accounts (and 
certain similar plans). These rules were published in the Federal 
Register on January 21, 2009. Extending the effective date would allow 
the Department of Labor to evaluate comments on questions of law and 
policy concerning the rules. Thus, this document also seeks comments 
generally on the rules and on the merits of rescinding, modifying or 
retaining the rules.

DATES: Comments on the proposal to extend the effective and 
applicability date should be submitted to the Department on or before 
February 18, 2009. Comments on the provisions of 29 CFR 2550.408g-1 and 
2550.408g-2 should be submitted to the Department on or before March 6, 
2009.

FOR FURTHER INFORMATION CONTACT: Fred Wong, Office of Regulations and 
Interpretations, Employee Benefits Security Administration (EBSA), 
(202) 693-8500. This is not a toll-free number.

ADDRESSES: To facilitate the receipt and processing of comment letters, 
EBSA encourages interested persons to submit their comments 
electronically by e-mail to <a href="/cdn-cgi/l/email-protection#8eeba3c1dcc7ceeae1e2a0e9e1f8"><span class="__cf_email__" data-cfemail="c1a4ec8e938881a5aeadefa6aeb7">[email protected]</span></a> (enter into subject line: 
Investment Advice Final Rule) or by using the Federal eRulemaking 
portal at http://www.regulations.gov. Persons submitting comments 
electronically are encouraged not to submit paper copies. Persons 
interested in submitting paper

[[Page 6008]]

copies should send or deliver their comments to the Office of 
Regulations and Interpretations, Employee Benefits Security 
Administration, Attn: Investment Advice Final Rule, Room N-5655, U.S. 
Department of Labor, 200 Constitution Avenue, NW., Washington, DC 
20210. All comments will be available to the public, without charge, 
online at http://www.regulations.gov and http://www.dol.gov/ebsa and at 
the Public Disclosure Room, N-1513, Employee Benefits Security 
Administration, U.S. Department of Labor, 200 Constitution Avenue, NW., 
Washington, DC 20210.

SUPPLEMENTARY INFORMATION: On January 21, 2009, the Department of Labor 
published final rules on the provision of investment advice to 
participants and beneficiaries of participant-directed individual 
account plans and to beneficiaries of individual retirement accounts 
(74 FR 3822). The rules contain regulations implementing a statutory 
prohibited transaction exemption under ERISA Sec.  408(b)(14) and Sec.  
408(g) and an administrative class exemption granting additional 
relief. As published, these rules were to be effective on March 23, 
2009. Paragraph (g) of Sec.  2550.408g-1 provided that the rule would 
apply to covered transactions occurring on or after March 23, 2009.
    By memorandum dated January 20, 2009, Rahm Emanuel, Assistant to 
the President and Chief of Staff, directed Agency Heads to consider 
extending for 60 days the effective date of regulations that have been 
published in the Federal Register but not yet taken effect. The 
memorandum further advised that, where such regulations are extended, 
agencies should allow 30 days for interested persons to comment on 
issues of law and policy raised by the rules. In accordance with that 
memorandum, and taking into account the considerations listed in the 
Memorandum of January 21, 2009, from Peter R. Orszag, Director of the 
Office of Management and Budget, the Department is proposing to extend 
the effective date for these rules until May 22, 2009, and to make a 
conforming amendment to the applicability date of Sec.  2550.408g-1.
    Extending the effective date for 60 days will allow the public to 
comment on whether the rules raise significant policy and legal issues 
and for the Department to review these comments and the rules before 
the relief granted by the rules becomes available. The exemptive relief 
granted by the rules would serve little purpose if the Department were 
to withdraw or amend the rules after plans and investment advisers had 
implemented procedures and incurred expenses in order to make use of 
the exemptive relief.
    The Department solicits comments on the proposal to extend the 
effective and applicability dates for 60 days. For this purpose, the 
comment period will end on February 18, 2009. At the same time, the 
Department also solicits comments on issues of law and policy 
concerning all the provisions of these rules. The purpose of these 
comments is to assist the Department in its review of these rules. Upon 
completion of this review, the Department may decide to allow the rules 
to take effect, issue a further extension, withdraw the rules, or 
propose amendments. The Department requests comments on each of these 
possible outcomes. The comment period for this broader purpose will end 
on March 6, 2009.

List of Subjects in 29 CFR Part 2550

    Employee benefit plans, Exemptions, Fiduciaries, Investments, 
Pensions, Prohibited transactions, Reporting and recordkeeping 
requirements, and Securities.

    For the reasons set forth above, the publication on January 21, 
2009 (73 FR 3822), of the final rule amending 29 CFR Part 2550, is 
proposed to be further amended as follows:

PART 2550--RULES AND REGULATIONS FOR FIDUCIARY RESPONSIBILITY

    1. The authority citation for part 2550 is revised to read as 
follows:

    Authority: 29 U.S.C. 1135; and Secretary of Labor's Order No. 1-
2003, 68 FR 5374 (Feb. 3, 2003). Sec. 2550.401b-1 also issued under 
sec. 102, Reorganization Plan No. 4 of 1978, 43 FR 47713 (Oct. 17, 
1978), 3 CFR, 1978 Comp. 332, effective Dec. 31, 1978, 44 FR 1065 
(Jan. 3, 1978), 3 CFR, 1978 Comp. 332. Sec. 2550.401c-1 also issued 
under 29 U.S.C. 1101. Sections 2550.404c-1 and 2550.404c-5 also 
issued under 29 U.S.C. 1104. Sec. 2550.407c-3 also issued under 29 
U.S.C. 1107. Sec. 2550.404a-2 also issued under 26 U.S.C. 401 note 
(sec. 657, Pub. L. 107-16, 115 Stat. 38). Sec. 2550.408b-1 also 
issued under 29 U.S.C. 1108(b)(1) and sec. 102, Reorganization Plan 
No. 4 of 1978, 3 CFR, 1978 Comp. p. 332, effective Dec. 31, 1978, 44 
FR 1065 (Jan. 3, 1978), and 3 CFR, 1978 Comp. 332. Sec. 2550.408b-19 
also issued under sec. 611, Public Law 109-280, 120 Stat. 780, 972, 
and sec. 102, Reorganization Plan No. 4 of 1978, 3 CFR, 1978 Comp. 
p. 332, effective Dec. 31, 1978, 44 FR 1065 (Jan. 3, 1978), and 3 
CFR, 1978 Comp. 332. Sec. 2550.408g-1 also issued under sec. 102, 
Reorganization Plan No. 4 of 1978, 3 CFR, 1978 Comp. p. 332, 
effective Dec. 31, 1978, 44 FR 1065 (Jan. 3, 1978), and 3 CFR, 1978 
Comp. 332. Sec. 2550.408g-2 also issued under 29 U.S.C. 1108(g) and 
sec. 102, Reorganization Plan No. 4 of 1978, 3 CFR, 1978 Comp. p. 
332, effective Dec. 31, 1978, 44 FR 1065 (Jan. 3, 1978), and 3 CFR, 
1978 Comp. 332. Sec. 2550.412-1 also issued under 29 U.S.C. 1112.

    2. Section 2550.408g-1 is amended by removing the date ``March 23, 
2009'' and adding in its place ``May 22, 2009'' in paragraph (g).

    Signed at Washington, DC, this 29th day of January, 2009.
Alan D. Lebowitz,
Deputy Assistant Secretary for Program Operations, Employee Benefits 
Security Administration, Department of Labor.
[FR Doc. E9-2296 Filed 2-3-09; 8:45 am]
BILLING CODE 4510-29-P


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