10/9/2008: Pension Rights Center Comments on Proposed Regulations and Class Exemption on Investment Advice (PDF) (Pension Rights Center)
4 pages. Excerpt: "The Department has issued a class exemption from the prohibited transaction rules for certain investment advice that goes well beyond the statutory exemption that is the subject of the proposed regulations. The exemption permits conflicted investment advice so long as the advice is preceded by investment recommendations generated by a computer model (similar to that described in the proposed regulation). Alternatively, the exemption permits advice so long as the compensation earned by the actual person giving advice (rather than the entity employing them) does not vary depending on the basis of any investment option selected by the participant. In our view, the potential for conflicted advice is even greater in these situations than in the more circumscribed statutory exceptions interpreted by the proposed regulations."
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