Delayed Issuance of the Section 408(b)(2) Final Rule

SIFMA provides comments to the Employee Benefits Security Administration (EBSA) expressing concerns about the delay in the issuance of the final rule under the Employee Retirement Income Security Act (ERISA) section 408(b)(2) and the upcoming effective date.  SIFMA has repeatedly urged the EBSA to release the regulation, explaining that in the absence of a final rule, SIFMA members could not complete all of the systems and process work needed to be able to comply. Now that the rule has been issued, and questions of interpretation remain, SIFMA requests that Department of Labor (DOL) provide “good faith compliance” relief from the penalties imposed under ERISA and the excise taxes imposed under the Internal Revenue Code through 2013, unless a longer period of time is appropriate as a result of possible new interpretations reflected in DOL’s frequently asked questions (FAQs) which are expected to be issued. In addition, SIFMA offers its assistance in drafting such good faith relief.