NEW YORK, NY, September 21, 2011 — On September 19, 2011, the US Department of Labor announced that it will re-propose its controversial regulation on the definition of an ERISA plan fiduciary. The original proposal generated hundreds of comments and a Congressional hearing. The new proposal will concentrate on the regulation’saffectontheIRAindustry. It will also clarify that fiduciary advice is limited to individualized advice directed to specific parties and will address concerns about, among other things, the impact of the regulation on routine appraisals and arm’s length transactions, like swap transactions. The DOL will also issue exemptions relating to the impact of the new regulation on the current fee practices of brokers and advisers and will clarify the continued applicability of exemptions that allow brokers to receive commissions in connection with mutual funds, stocks and insurance products.
The re-proposed regulation is expected to be issued in early 2012.
While the proposed regulation is not expected to create fiduciary status for many types of plan service providers, persons that do not today consider themselves fiduciaries may be included in the definition. This may lead to situations where an independent fiduciary can provide service to a plan to avoid a conflict of interest on the part of a provider that becomes a fiduciary under the new rule.
About Brock Fiduciary Services
Brock Fiduciary Services is an independent fiduciary that is currently managing over $25 billion of assets. Brock has full discretionary control to manage the UAW Retiree Medical Benefits Trust’s interests in General Motors’ common stock, warrants, and preferred stock; and remaining interests in Chrysler’s unsecured debt. Recently, Brock helped AT&T design a preferred security in connection with a $9.5 billion contribution to its pension plan that is currently pending before the Department of Labor.
Additional information about Brock and the services provided by Brock is available at https://brockcapital.com/independent-fiduciary.