[Federal Register Volume 73, Number 199 (Tuesday, October 14, 2008)]
[Notices]
[Pages 60720-60721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-24338]


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DEPARTMENT OF LABOR

Employee Benefits Security Administration


Hearing on Proposed Class Exemption for Investment Advice

AGENCY: Employee Benefits Security Administration, U.S. Department of 
Labor.

ACTION: Notice of hearing.

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SUMMARY: Notice is hereby given that the Department of Labor will hold 
a hearing on the Department's proposed class exemption from certain 
prohibited transaction restrictions of the Employee Retirement Income 
Security Act of 1974, as amended (ERISA, or the Act), and from certain 
taxes imposed by the Internal Revenue Code of 1986, as amended (Code), 
for the provision of investment advice to participants and 
beneficiaries of self-directed individual account plans and individual 
retirement accounts (IRAs).

DATES: The hearing will be held on October 21, 2008, beginning at 8 
a.m., EST. Persons interested in presenting testimony and answering 
questions at the public hearing must submit requests and certain other 
information (as discussed below), by 3:30 p.m., EST, October 16, 2008.

ADDRESSES: The hearing will be held at the U.S. Department of Labor, 
Room S-3215 A&B, 200 Constitution Avenue, NW., Washington, DC 20210.

FOR FURTHER INFORMATION CONTACT: Fil Williams, Office of Regulations 
and Interpretations, Employee Benefits Security Administration, (202) 
693-8510. This is not a toll-free number.

SUPPLEMENTARY INFORMATION: On August 22, 2008, notice was published in 
the Federal Register (73 FR 49924) that the Department of Labor (the 
Department) has under consideration a proposed class exemption to 
permit the provision of investment advice to participants and 
beneficiaries of self-directed individual account plans, such as 401(k) 
plans, and IRAs. The Department proposed the class exemption on its own 
motion pursuant to section 408(a) of ERISA, and in accordance with the 
procedures set forth in 29 CFR Part 2570, subpart B (55 FR 32836, 
August 10, 1990).
    Specifically, upon adoption, the proposed exemption would provide 
relief from the restrictions of section 406(a) and 406(b) of the Act, 
and from the taxes imposed by section 4975(a) and (b) of the Code, by 
reason of section 4975(c)(1) of the Code, for the provision of 
investment advice described in section 3(21)(A)(ii) of ERISA by a 
fiduciary adviser to a participant or beneficiary in an individual 
account plan or IRA (and certain similar plans), the acquisition, 
holding or sale of a security or other property pursuant to the 
investment advice, and the direct or indirect receipt of fees or other 
compensation by the fiduciary adviser (or any employee, agent, 
registered representative or affiliate thereof) in connection with such 
transactions.
    Upon adoption, the class exemption would affect sponsors, 
fiduciaries, participants and beneficiaries of participant-directed 
individual account plans and IRAs, as well as providers of investment 
and investment advice-related services to such plans.
    In the notice of proposed exemption, the Department invited 
interested persons to submit written comments on or before October 6, 
2008. To date, the Department has received approximately 39 written 
comments concerning the proposed class exemption, many of which were 
from major industry groups. All written comments are available to the 
public, without charge, online at http://www.dol.gov/ebsa and at the 
Public Disclosure Room N-1513, Employee Benefits Security 
Administration, U.S. Department of Labor, 200 Constitution Avenue, NW., 
Washington, DC 20210.
    In their written comments, four parties requested that the 
Department hold a public hearing to more fully examine issues raised 
under the proposed class exemption, and

[[Page 60721]]

expressed an interest in testifying. In view of the importance of this 
initiatives and its potential for significantly affecting the provision 
of investment advice to participants and beneficiaries in affected 
plans, and taking into account the concerns of these commenters, the 
Department has decided to hold a public hearing. The primary purpose of 
this hearing is to further develop the public record regarding the 
class exemption and to assist the Department in understanding the 
issues and other concerns raised by the written comments. Because 
information contained in previously-submitted written comments is 
already part of the public record, the Department expects that persons 
testifying at the hearing will present information not previously 
addressed in their written comments.
    The hearing will be held on October 21, 2008, beginning at 8 a.m. 
and ending at 5 p.m., EST, in Room S-3215 A&B of the Department of 
Labor, Francis Perkins Building, at 200 Constitution Avenue, NW., 
Washington, DC 20210.
    Persons interested in presenting testimony and answering questions 
at this public hearing must submit, by 3:30 p.m., EST, October 16, 
2008, the following information: (1) A written request to be heard; and 
(2) An outline of the topics to be discussed, indicating the time 
allocated to each topic. To facilitate the receipt and processing of 
responses, EBSA encourages interested persons to submit their requests 
and outlines electronically by e-mail to [email protected]. Persons 
submitting requests and outlines electronically are encouraged not to 
submit paper copies.
    Persons submitting requests and outlines on paper should send or 
deliver their requests and outlines (preferably at least three copies) 
to the Office of Regulations and Interpretations, Employee Benefits 
Security Administration, Attn: Investment Advice Class Exemption 
Hearing, Room N-5655, U.S. Department of Labor, 200 Constitution 
Avenue, NW., Washington, DC 20210. All requests and outlines submitted 
to the Department will be available to the public, without charge, 
online at http://www.dol.gov/ebsa and at the Public Disclosure Room N-
1513, Employee Benefits Security Administration, U.S. Department of 
Labor, 200 Constitution Avenue, NW., Washington, DC 20210.
    The Department will prepare an agenda indicating the order of 
presentation of oral comments and testimony. In the absence of special 
circumstances, each presenter will be allotted ten (10) minutes in 
which to complete his or her presentation.
    Any individuals with disabilities who may need special 
accommodations should notify Fil Williams on or before October 16, 
2008.
    Information about the agenda will be posted on http://www.dol.gov/ebsa on or after October 16, 2008, or may be obtained by contacting Fil 
Williams, Office of Regulations and Interpretations, Employee Benefits 
Security Administration, U.S. Department of Labor, telephone (202) 693-
8510 (this is not a toll-free number).
    Those individuals who make oral comments and testimonies at the 
hearing should be prepared to answer questions regarding their 
information and/or comments. The hearing will be transcribed.

Notice of Public Hearing

    Notice is hereby given that a public hearing will be held on 
October 21, 2008, concerning the Department's proposed class exemption 
for the provision of investment advice to participants and 
beneficiaries of self-directed individual account plans and IRAs. The 
hearing will be held beginning at 8 a.m. in Room S-3215 A&B of the U.S. 
Department of Labor, Francis Perkins Building, 200 Constitution Avenue, 
NW., Washington DC, 20210.

    Signed at Washington, DC, this 8th day of October, 2008.
Bradford P. Campbell,
Assistant Secretary, Employee Benefits Security Administration, U.S. 
Department of Labor.
[FR Doc. E8-24338 Filed 10-10-08; 8:45 am]
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