Compliance July 2, 2025

EBSA Eliminates Three Interpretive Bulletins, Calling Them ‘Unnecessary’

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The Department of Labor’s Employee Benefits Security Administration announced on Monday that it is removing three interpretive bulletins related to the Employee Retirement Income Security Act, calling them obsolete and unnecessary. 

The rule eliminates Interpretive Bulletins 75-2, 75-6, and 75-10 from Title 29 of the Code of Federal Regulations. These bulletins, issued shortly after ERISA’s passage, were originally intended to guide fiduciaries and plan sponsors navigating the complex new law. However, the Department stated that subsequent regulations and legal developments have rendered them redundant.

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“The DOL believes the interpretive bulletins are no longer needed, and if left on the books, add potential confusion and unnecessary complexity,” the agency stated in the release. The notice stated that the action follows a January Executive Order by President Donald Trump called “Unleashing Prosperity Through Deregulation” by “reducing unnecessary, burdensome, and costly federal regulations.”

The Removed Bulletins

Interpretive Bulletin 75-2 offered the DOL’s views on prohibited transactions involving parties in interest in an employee benefit plan. The DOL believes newer sub–regulatory guidance provides a more current and accurate framework about the Department’s view of prohibited transactions.

Plaintiffs have frequently filed complaints this year alleging plan sponsors had engaged in prohibited transactions as part of a recent flurry of ERISA litigation. Daniel Aronowitz, who awaits a full Senate vote to head the EBSA, said he plans to end the flood of cases.  

Interpretive Bulletin 75-6 concerned fiduciary expense advances, a topic that was comprehensively addressed by a final regulation in 1977, according to the release. 

“There is no reason to permit identical standards for the same conduct to exist in two different parts of the Code of Federal Regulations,” the agency stated in the release. “Indeed, analyzing both regulations to determine whether they are different or cover different conduct only wastes time and resources that could be more productively employe,”

Interpretive Bulletin 75-10 clarified the interplay between IRS and DOL jurisdiction. That issue was effectively resolved by the Reorganization Plan No. 4 of 1978 and its Congressional ratification in 1984, making the bulletin unnecessary, according to the release. 

While the rule is set to take effect 60 days from its official publication—the DOL is inviting public comment during the first 30 days.

In Practice July 1, 2025

Kestra Survey Looks At ‘Messy’ Succession Planning

While many 1st Generation advisers express confidence in their succession plans, only 6% of those planning to retire within the next decade have a fully documented strategy in place.

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An industry study by Kestra Financial and Bluespring Wealth Partners—both part of the Kestra Holdings ecosystem—highlights a critical challenge facing financial advisory firms: the disconnect between G1 advisers, or firm owners approaching retirement, and their G2 successors.

As financial advisers built careers helping clients plan for financial security as they navigate life’s major transitions, many have not applied that same discipline to their own retirement and succession. After building a successful practice, advisers must develop a robust succession plan.

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While many G1s express confidence in their succession plans, only 6% of those planning to retire within the next decade have a fully documented strategy in place. Meanwhile, many G2 advisers report feeling undervalued, underprepared, and increasingly uncertain about their future with some considering leaving the firm altogether.

In an industry already facing a shortage of next-generation talent, this misalignment poses a serious risk to long-term continuity and growth. Despite often sharing the same vision, G1 and G2 advisers remain far apart in execution. Kestra’s research, Bridging the Gap: Addressing Succession Misalignment Between G1 and G2 Advisors, identifies three key barometers for evaluating the strength of a succession plan and the level of alignment between generations—critical metrics for any firm looking to secure its future leadership.

  1. Desire
  • 58% of G1s struggle to relinquish control.
  • 76% of G1s planning to retire within 10 years have not mapped out a timeline for transitioning client relationships.
  1. Preparedness
  • Only 25% of G1s have a formal leadership transition plan.
  • 43% fear their clients won’t be as well cared for if they step away.
  1. Ability
  • 53% of G1s say finding a G2 with aligned values is a significant challenge.
  • 1 in 3 G2s say they would leave in the absence of a clear succession timeline.

Keys to Effective Succession

To address these challenges, the report outlines three essential pillars for succession success: transparency, training, and tangibility. Transparency calls for open, ongoing dialogue between G1 and G2 advisers to ensure alignment on long-term goals and expectations. Training provides G2s with mentorship, professional development, and practical experience needed to step confidently into leadership roles. Tangibility means having a clearly documented plan to reduce ambiguity and minimize the stress that often accompanies leadership transitions.

“Not paying attention to succession planning or delaying a transition can expose any business to both talent and client loss, and ultimately it can lead to enterprise value erosion,” said Pradeep Jayaraman, president of Bluespring. “There are multiple approaches to succession planning: naming an internal successor, bringing in an outside hire, or pursuing a merger or sale. Determining the best path all comes down to aligning the unique goals of each business owner and their potential successor to ensure a successful transition.”

The survey was conducted with both G1 and G2 advisers across a broad range of independent broker-dealers and RIAs. All participants were from firms generating $750K or more in revenue, with at least half of that revenue coming from individual retail investors.

Kestra Financial is an independent wealth management platform that empowers financial professionals and firms through personalized support, integrated business management technology, and a collaborative professional community. Bluespring Wealth Partners is dedicated to the acquisition and support of quality wealth management firms.

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