Updates

DOL Letter on Swap Dealers and Major Swap Participants

01/20/2012


January 20, 2012 – The Department of Labor (DOL) has released a letter sent to the Commodity Futures Trading Commission’s (CFTC) expressing the DOL’s opinion on the interaction of the CFTC’s conduct rules for swap dealers and major swap participants and the DOL’s ERISA Fiduciary regulations.

In the DOL’s opinion, a party’s actions simply to meet the CFTC’s conduct standard requirements for swap dealers and major swap participants does not automatically make them fiduciaries under ERISA using the DOL’s current test for ERISA fiduciaries. Additionally, the DOL states that the updated ERISA fiduciary test will be drafted in a way to ensure that they work with the CFTC’s requirements and that there are no unintended consequences for swap dealers and major swap participants from complying with the conduct standards.
 
The DOL letter may be accessed as follows.

http://www.dol.gov/ebsa/pdf/cftc20120117.pdf



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