The DOL has formally withdrawn its 2024 regulations regarding the ERISA fiduciary status of persons rendering “investment advice” for a fee with respect to “moneys or other property” of an employee benefit plan. Under the 2024 regulations, investment recommendations directed to specific investors were ERISA investment advice if the advisor (1) regularly provided professional investment recommendations in a manner suggesting that they were tailored to an investor’s specific circumstances and reflected professional judgment intended to advance the investor’s interests; or (2) represented or acknowledged acting as an ERISA fiduciary with respect to the recommendations. When the regulations were issued, the DOL also amended a previously issued prohibited transaction exemption, PTE 2020-02, regarding rollover advice. Shortly thereafter, however, two federal trial courts placed a hold on the 2024 regulations and the related PTE amendments.

To dig deeper, visit the original article on the Thomson Reuters blog.