OMB files this
comment in accordance with 5 CFR 1320.11( c ). This OMB action is
not an approval to conduct or sponsor an information collection
under the Paperwork Reduction Act of 1995. This action has no
effect on any current approvals. If OMB has assigned this ICR a new
OMB Control Number, the OMB Control Number will not appear in the
active inventory. For future submissions of this information
collection, reference the OMB Control Number provided. The agency
will respond to comments received on the ICR in the final
rule.
Inventory as of this Action
Requested
Previously Approved
36 Months From Approved
0
0
0
0
0
0
0
0
0
The Department is proposing this
prohibited transaction class exemption (PTE) in connection with its
proposed regulation under ERISA section 3(21)(A)(ii) and Code
section 4975(e)(3)(B) (Proposed Regulation). The Proposed
Regulation would amend the definition of a "fiduciary" under ERISA
and the Code to specify when a person is a fiduciary by reason of
the provision of investment advice for a fee or other compensation
regarding assets of a plan or IRA (i.e., an investment advice
fiduciary). If adopted, the Proposed Regulation would replace an
existing regulation dating to 1975, with the aim of more
appropriately distinguishing between the sorts of advice
relationships that should be treated as fiduciary in nature and
those that should not. The proposed exemption would allow an
individual investment advice fiduciary (an adviser) and the firm
that employs or otherwise contracts with the adviser (a financial
institution) to engage in principal transactions involving certain
debt securities with plans and IRAs. The proposed exemption limits
the type of debt securities that may be purchased or sold and
contains conditions which the adviser and financial institution
must satisfy in order to rely on the exemption. To safeguard the
interests of plans and IRAs, the exemption would require the
adviser and financial institution to contractually acknowledge
fiduciary status and commit to adhere to certain impartial conduct
standards when providing advice to the plan or IRA, including
providing advice that is in the plan's or IRA's Best Interest. The
financial institution would further be required to warrant that it
has adopted policies and procedures designed to mitigate the impact
of conflicts of interest and ensure that the individual advisers
adhere to the impartial conduct standards. The plan or IRA would be
required to consent to the principal transactions following
disclosure of the conflicts of interest associated with such
transactions. Additional disclosure of the mark-up or mark-down
applied to the prevailing market price of the security would be
required and financial institutions would be subject to
recordkeeping requirements.
US Code:
29
USC 1108 Name of Law: Employee Retirement Income Security
Act
The Department is proposing
this prohibited transaction class exemption (PTE) in connection
with its proposed regulation under ERISA section 3(21)(A)(ii) and
Code section 4975(e)(3)(B) (Proposed Regulation). The Proposed
Regulation would amend the definition of a "fiduciary" under ERISA
and the Code to specify when a person is a fiduciary by reason of
the provision of investment advice for a fee or other compensation
regarding assets of a plan or IRA (i.e., an investment advice
fiduciary). If adopted, the Proposed Regulation would replace an
existing regulation dating to 1975, with the aim of more
appropriately distinguishing between the sorts of advice
relationships that should be treated as fiduciary in nature and
those that should not. The proposed exemption would allow an
individual investment advice fiduciary (an adviser) and the firm
that employs or otherwise contracts with the adviser (a financial
institution) to engage in principal transactions involving certain
debt securities with plans and IRAs. The proposed exemption limits
the type of debt securities that may be purchased or sold and
contains conditions which the adviser and financial institution
must satisfy in order to rely on the exemption. To safeguard the
interests of plans and IRAs, the exemption would require the
adviser and financial institution to contractually acknowledge
fiduciary status and commit to adhere to certain impartial conduct
standards when providing advice to the plan or IRA, including
providing advice that is in the plan's or IRA's Best Interest. The
financial institution would further be required to warrant that it
has adopted policies and procedures designed to mitigate the impact
of conflicts of interest and ensure that the individual advisers
adhere to the impartial conduct standards. The plan or IRA would be
required to consent to the principal transactions following
disclosure of the conflicts of interest associated with such
transactions. Additional disclosure of the mark-up or mark-down
applied to the prevailing market price of the security would be
required and financial institutions would be subject to
recordkeeping requirements.
No
No
No
No
No
Uncollected
Chris Cosby 202
693-8540
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.