Regulatory Updates
Regulatory Updates provide quick access to employee benefit regulations, rulings and other guidance released by governmental agencies in the U.S. and Canada.
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DOL Issues Final Rule Amending Prohibited Transaction Exemption Filing and Processing Procedures
Jan 24, 2024, 06:00
by
Amanda Wilke
The U.S. Department of Labor's (DOL) Employee Benefits Security Administration (EBSA) issued a final rule amending its existing procedure governing the filing and processing of prohibited transaction exemption applications.
Section 408(a) of the Employee Retirement Income Security Act of 1974 (ERISA) directs the Secretary of Labor to establish procedures for granting administrative prohibited transaction exemptions. The exemption procedure regulation finalizes the exemption procedure regulation that DOL proposed on March 15, 2022.
The final rule promotes DOL's consideration of all prohibited transaction exemption applications by, among other things:
- Clarifying the types of information and documentation required for a complete application;
- Revising the definitions of a qualified independent fiduciary and qualified independent appraiser in order to ensure their independence;
- Clarifying the content of specific reports and documents applicants must submit in order to ensure that DOL receives sufficient information to make the requisite findings under ERISA Section 408(a) to issue an exemption;
- Updating various timing requirements to ensure clarity in the application review process;
- Specifying items that are included in the administrative record for an application and when the administrative record is available for public inspection; and
- Expanding opportunities for applicants to submit information to DOL electronically.
The amendments in the rule are effective April 8, 2024.