Improving Investment Advice
for Workers & Retirees Prohibited Transaction Exemption
Revision of a currently approved collection
No
Regular
11/03/2023
Requested
Previously Approved
36 Months From Approved
02/29/2024
6,504,119
1,755,959
1,044,050
401,251
167,296
92,063
The proposed exemption would allow
investment advice fiduciaries under both ERISA and the Code to
receive compensation, including as a result of advice to roll over
assets from a Plan to an IRA, and engage in principal transactions,
that would otherwise violate the prohibited transaction provisions
of ERISA and the Code. The exemption would apply to registered
investment advisers, broker-dealers, banks, insurance companies,
and their employees, agents, and representatives that are
investment advice fiduciaries. The exemption would include
protective conditions designed to safeguard the interests of Plans,
participants and beneficiaries, and IRA owners. The new class
exemption would affect participants and beneficiaries of Plans, IRA
owners, and fiduciaries with respect to such Plans and
IRAs.
US Code:
26 USC 4975(c)(2) Name of Law: Internal Revenue Code
US Code: 29
USC 1108(a) Name of Law: Employee Retirement Income Security
Act
The Department is proposing an
amendment to PTE 2020-02 would build on existing conditions of PTE
2020-02 to provide more certainty for Retirement Investors
receiving advice and Financial Institutions and Investment
Professionals complying with the exemption’s conditions. In this
regard, the Department is proposing additional disclosures to
ensure that Retirement Investors have sufficient information to
make informed decisions about the costs of the investment advice
transaction and about the significance and severity of the
investment advice fiduciary Conflicts of Interest. The proposed
amendment also would provide more guidance for Financial
Institutions and Investment Professionals complying with the
Impartial Conduct Standards and implementing the policies and
procedures. In addition, the Department has revised the number of
broker-dealers, the number of investment advisers, the number of
insurers, the number of robo-advisers, the number of insurance
agents and brokers, the number of plan-to-plan rollovers, the
number of plan to IRAs rollovers, and the number of IRA to IRA
rollovers. The Department has also revised its estimate of the wage
and postage costs due to increased labor costs and inflation. As a
result, the number of responses has increased by 4,748,160
responses, the hour burden has increased by 642,799 hours, and the
cost burden as increased by $75,233.
$0
No
No
No
No
No
No
No
James Butikofer 202 693-8434
Butikofer.James@dol.gov
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.