AI Seeks Extension for Comment Period on DOL Proposal for ERISA-prohibited Transactions

The Appraisal Institute on April 11 sent a letter to the Department of Labor urging it to extend the comment period for responses to its proposed rule Procedures Governing the Filing and Processing of Prohibited Transaction Exemptions Applications.

AI asked for the comment period to be extended from 30 days to 60 due to the rule containing “myriad provisions that raise novel legal and policy issues for all parties involved in these transactions, including appraisers.” Among the concerns is how the proposed rule would redefine the term “qualified independent appraiser,” stating that an appraiser would not be independent if he or she receives more than 2% of their annual revenue from parties involved in the exemption transaction. AI expressed concern that the final rule could lead to increased liability costs and prevent appraisers from the performing these types of services.