Labor Department Proposes Rule to Streamline Registration by Investment Managers to Plans

Archived News Release — Caution: Information may be out of date.

WASHINGTON—The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) today proposed a rule that would require state-registered investment advisers seeking investment manager status under federal benefit law to register electronically through the Investment Adviser Registration Depository (IARD).

The electronic IARD filing would replace the current requirement for state-registered investment advisers to file a paper copy of their state registration forms with the department. Under the Employee Retirement Income Security Act (ERISA), plan trustees are relieved of certain liabilities relating to management of plan assets by a registered investment adviser, bank or insurance company that meets certain requirements to be appointed an investment manager for an ERISA-covered plan.

The IARD is a centralized electronic filing system for investment advisers created by the Securities and Exchange Commission (SEC) and state securities regulators. A majority of state-registered investment advisers who are investment managers of ERISA-covered plans already file registration forms electronically through the IARD.

“This regulation will not only reduce burdens by eliminating a requirement to file paper copies of registrations with the Department, but also promotes efficient plan administration by enabling plan fiduciaries to consult a single source for determining the status of an investment advisor under ERISA,” said Ann L. Combs, Assistant Secretary of EBSA.

Written comments on the proposal should be submitted to the Office of Regulations and Interpretations, Room N-5669, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Ave., NW, Washington, D.C. 20210, Attention: ERISA Investment Manager Electronic Registration NPRM, or by Internet to E-ORI.EBSA@dol.gov. The proposed regulation is scheduled to be published in the Dec. 9, 2003 Federal Register.

Archived News Release — Caution: Information may be out of date.