DOL should not regulate generally accepted investment theories, employer groups say

Employer groups, responding to the Labor Department's proposed investment advice regulations on May 5, 2010, said that the DOL should not attempt to regulate what constitutes "generally accepted investment theories."

In the proposed investment advice rules, which were issued in March 2010, the DOL made a request for public comment on the conditions applicable to investment advice arrangements that use computer models. Specifically, the DOL sought comments on whether final regulations should: require (or proscribe) the use of specified investment theories and practices; specify minimum standards (e.g., minimum number of years of experience) for historical data that is taken into account in determining a model's expectation for the future performance of asset classes and specific investment alternatives; or expressly designate the criteria that are appropriate and objective bases for asset allocation...

CCH: DOL should not regulate generally accepted investment theories, employer groups say