Employee Retirement Income
Security Act Prohibited Transaction Exemption 1986-128 For
Securities Transactions Involving Employee Benefit Plans and
Broker-Dealers
Revision of a currently approved collection
No
Regular
11/03/2023
Requested
Previously Approved
36 Months From Approved
08/31/2025
33,570
275,745
2,929
2,193
37,034
296,108
Prohibited Transaction Exemption
86-128 (as amended) permits persons who serve as fiduciaries for
employee benefit plans to effect or execute securities transactions
on behalf of employee benefit plans.
US Code:
29
USC 1108 Name of Law: Employee Retirement Income Security Act
of 1974
The number of plans affected
has been updated to reflect updated Form 5500 data, and thus, the
number of responses has decreased. The estimated number of affected
broker-dealer fiduciaries has also been updated to reflect current
Securities and Exchange Commission data. In addition, the
Department has also revised its estimate of the wage and postage
costs due to increased labor costs and inflation. The Department is
proposing to amend PTE 86-128 by adding a recordkeeping requirement
for financial institutions. In addition, the amendment would cover
IRAs in Section III of the class exemption. Section III imposes
information collection requirements on fiduciaries of employee
benefit plans and IRAs that affect or execute securities
transactions and the independent plan fiduciary authorizing the
plan to engage in the transactions with the broker-dealer. Thus,
IRAs have been included in this analysis, and thus, the hour burden
has increased. As a result, the number of responses has decreased
by 242,175 responses, the hour burden increased by 736 hours, and
the cost burden decreased by $259,074. Finally, the Department is
amending PTE 86-128 by removing fiduciary investment advice from
the covered transactions. While the Department is proposing to
amend PTE 86-128 by removing fiduciary investment advice from the
covered transactions, the Department believes that this would
result in a marginal change. Thus, this change would not affect the
hour and cost burden.
$0
No
No
No
No
No
No
Yes
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.