Compliance November 19, 2009

EBSA Pulls Back Controversial Advice Mandate

The long saga of the U.S. Department of Labor’s (DoL) hotly debated investment advice rule took another twist today when the DoL’s Employee Benefits Security Administration (EBSA) announced the controversial final rule is being withdrawn.

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The latest announcement follows EBSA’s recent extension of the applicability and effective dates of the rule to May 17, 2010 (see “EBSA Further Delays Advice Rule”). EBSA said the extension expires on the rule’s withdrawal.

“The department decided to withdraw the rule based on public comments that raised sufficient doubts as to whether the conditions of the final rule and the class exemption associated with the rule could adequately protect the interests of plan participants and beneficiaries,” EBSA commented in a news release.

The agency said it intends to publish separately a proposed rule that conforms to the Pension Protection Act statutory exemption relating to investment advice.

Products November 19, 2009

Delta Global Asset Management Offers FundQuest's Services

Delta Global Asset Management, a registered investment advisory (RIA) firm, selected FundQuest to provide outsourced technology, back-office, and investment research services.

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FundQuest, a provider of outsourced managed account solutions, said its services have been integrated with Delta’s existing infrastructure to provide unified managed accounts, income-generation portfolios, Russell model portfolios, and exchange-traded funds (ETFs). The services include connectivity to Delta’s custody and clearing firm, Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation.

Delta Global Asset Management is a subsidiary of national full-service broker/dealer Delta Equity Services Corporation, headquartered in Bolton, Massachusetts, and has 43 branches in the U.S.

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