The DOL has announced two new rules to improve retirement security. As you may recall, the DOL announced final regulations in January 2009 in January 2009 before putting them on hold and ultimately withdrawing them in November 2009. One of the two new rules is a revised investment advice rule "limited to the implementation of the PPA statutory exemption relating to investment advice". Here is an overview of the proposed investment advice regulation:

Overview of Proposed Investment Advice Regulation

• After review, the Department decided to propose a revised rule limited to the implementation of the PPA statutory exemption relating to investment advice.
  
  
• The proposed regulation allows investment advice to be given under the statutory exemption in two ways. One is through the use of a computer model certified as unbiased. The other way is through an adviser compensated on a "level-fee" basis (i.e., fees do not vary based on investments selected by the participant).
  
  
• Several other requirements also must be satisfied, including disclosure of fees the adviser is to receive. The regulation contains some key safeguards and conditions, including:
  
  
• Requiring that a plan fiduciary (independent of the investment adviser or its affiliates) select the computer model or fee leveling investment advice arrangement.
  
• Imposing recordkeeping requirements for investment advisers relying on the exemption for computer model or fee leveling advice arrangements.
  
• Requiring that computer models must be certified in advance as unbiased and meeting the exemption's requirements by an independent expert.
  
• Establishing qualifications and a selection process for the investment expert who must perform the above certification.
  
• Clarifying that the fee-leveling requirements do not permit investment advisers (including its employees) to receive compensation from affiliates on the basis of their recommendations.
  
• Establishing an annual audit of investment advice arrangements, including the requirement that the auditor be independent from the investment advice provider.
  
• Requiring disclosures by advisers to plan participants.