investment advice to participants

[k man]

has there been any movement on the pending legilation? if i recall the house passed legislation making which would permit plan fiduciaries to provide advice to participants.

[Guest rmeigs]

You are probably thinking of the Pension Protection Act of 2005 (HR 2830) where certain transactions related to the providing of investment advice would be exempt from the prohibited transaction rules. It has not passed the House and only has 14 co-sponsors. Not a good sign.

[k man]

it may not have sponsors because there are two other bills floating around. the grassley bill just passed though committee but that particular bill does not contain the PT exception. my focus is on weither fiduciaries (IA's) can provide investment advice to both participants and the plan. as it stands right now i think that would be a PT.

[Guest Pete Swisher]

k man--I agree if you rephrase that last sentence--providing advice to both plan and participants is not a PT, I think. The problem is providing services to both sponsor and plan/participants. A sponsor can hire an advisor to serve the plan and its participants simultaneously. THe problem would be if the advisor is hired to serve the sponsor and not the plan. If you know of guidance that says otherwise let me know--very important.

[R. Butler]

Pete Swisher, now thats a name I recognize. Hope all is going well.