Advocate

DOL to Hold Public Hearing on Proposed Rule Mandating Valuators of Private ESOP Companies be Fiduciaries

by The ESOP Association | Dec 22, 2010

Companies be Fiduciaries

The Department of Labor’s Employee Benefits Security Administration (DOL EBSA) announced in a press release today that it will hold a public hearing on March 1, 2011 in Washington, D.C. on the proposed rule regarding the definition of a fiduciary, which included mandating all valuators of private company ESOPs be fiduciaries to the ESOPs they valuate.  You can find a copy of the proposed rule on the DOL’s website here - http://webapps.dol.gov/FederalRegister/HtmlDisplay.aspx?DocId=24328&AgencyId=8&DocumentType=1

According to the DOL’s press release, a formal notice regarding the hearing will be issued in January 2011.  The DOL will not consider requests to testify in advance of the formal notice.

Also noted, the DOL will accept public comments until Feb. 3, 2011.  This is two weeks after the close of the Jan. 20, 2011 comment period.

President of The ESOP Association, J. Michael Keeling, noted, “This announcement is positive news.  We applaud EBSA’s decision to have an open discussion about its proposal that would impact 98% of the ESOPs in America.  Now, we will be able to hear DOL’s concerns explained in full, and we ESOP advocates will be able to voice our thoughts in public.”

The press release is available on the DOL’s website here - http://www.dol.gov/ebsa/newsroom/2010/ebsa122210.html

If you would like additional information about the rule and The ESOP Association’s position, please click here.

Additional information about the DOL’s proposed regulation on the definition of a fiduciary can be found on The ESOP Association’s blog here