DOL Finalizes PTE 2020-02 Amendments

On April 25, 2024, the U.S. Department of Labor ("DOL") published its much-anticipated final regulation on the definition of "fiduciary" under section 3(21)(a)(ii) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). This marks the latest chapter of the DOL's long-running effort to expand the circumstances under which a person is considered an investment advice fiduciary for purposes of ERISA and the parallel provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and to change the landscape of prohibited transaction exemptions available to those fiduciaries.

The package of materials published by DOL includes:

• A final regulation re-defining who is a "fiduciary" by reason of providing investment advice to a plan or an IRA (the "2024 Final Rule");