The Labor Department on Thursday delayed for the second time the effective date for its investment advice regulation for defined contribution plans to Nov. 18.
The regulation, which was approved by the Bush administration Jan. 20 was due to go into effect March 23 but after President Barack Obama took office it had been postponed until May 22.
The regulation would allow mutual fund companies to provide direct one-on-one advice to plan participants through fund company affiliates. Existing regulations have effectively barred mutual fund companies from offering direct advice.
The department has since determined that additional time is necessary to consider the legal and policy issues raised by comments on the final rule, according to a DOL news release. Todays extension of the effective and applicability dates will afford the department that additional time.