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News February 14, 2011 Issue

DOL Extends Deadline For Adviser Compensation And Services Disclosures

Advisers and other pension plan service providers just got a bit of a reprieve on compliance with new disclosure obligations under ERISA.

An interim final rule that will require advisers and others to provide advance disclosures to employee benefit plans about their services and compensation was set to take effect in July. On February 11, the Department of Laborís Employee Benefit Securities Administration (EBSA) extended the compliance deadline until January 1, 2012.

DOL intended to have final rules in place sufficiently in advance of the original July 16 compliance date to avoid compliance problems for both plans and their service providers, said EBSA assistant secretary Phyllis Borzi. "Given the need to ensure a careful review of all the valuable input we received on the interim final rule, including suggestions for a summary document to further assist plan fiduciaries in their review of furnished information, we now believe plans and plan service providers would benefit from an extension of the ruleís applicability date," she said. The extension will ensure an amount of time "to get the final rule right" and allow plans and their service providers the time to come into compliance with the final rule in an orderly and efficient manner, said Borzi.