DOL Field Assistance Bulletin 2007-01

Date: February 2, 2007
Subject: Statutory Exemption For Investment Advice
Issue: Guidance relating to the investment advice provisions of the Pension Protection Act of 2006.

This Field Assistance Bulletin provides guidance regarding the statutory exemption for investment advice provided for by the PPA. It addresses the following issues:

1. Did enactment of the investment advice provisions of the Pension Protection Act of 2006 invalidate or otherwise affect prior guidance issued by the Department concerning investment advice?

No. Past guidance relating to investment advice may still be relied upon.

2. To what extent are the standards for selecting and monitoring a fiduciary adviser described in section 408(g)(10) different from the standards applicable to plan fiduciaries who offer an investment advice program with respect to which relief under the statutory exemption for investment advice (section 408(b)(14)) is not required?

3. For purposes of an “eligible investment advice arrangement” within the meaning of section 408(g)(2)(A)(i), is an affiliate of a fiduciary adviser subject to the level fee requirement?

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