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
03/31/2018
36 Months From Approved
03/31/2018
1,300,000
0
1,300,000
35,000
0
35,000
1,100,000
0
1,100,000
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
PTE 86-128 currently provides
an exemption for certain fiduciaries and their affiliates to
receive a fee from a plan or IRA for effecting or executing
securities transactions as an agent on behalf of the plan or IRA.
It also allows a fiduciary to act in an "agency cross transaction"
-- as an agent both for the plan or IRA and for another party --
and receive reasonable compensation from the other party. The
exemption generally requires compliance with certain conditions
such as advance disclosures to and approval by an independent
fiduciary, although such conditions are not currently applicable to
transactions involving IRAs. This proposed amendment to PTE 86-128
would increase the safeguards of the exemption in a number of ways.
The amendment would require fiduciaries relying on the exemption to
adhere to certain "Impartial Conduct Standards," including acting
in the Best Interest of the plans and IRAs when providing advice,
and would define the types of payments that are permitted under the
exemption. The amendment would restrict relief under this exemption
to IRA fiduciaries that have discretionary authority or control
over the management of the IRA's assets (i.e., investment
managers). The amendment also would take the additional step of
imposing the exemption's conditions on those fiduciaries when they
engage in transactions with IRAs. This proposed amendment also
would add a new transaction to the exemption for certain
fiduciaries to act as principals (as opposed to agents for third
parties) in selling mutual fund shares to plans and IRAs and to
receive commissions for doing so. An exemption for this transaction
is currently available in PTE 75-1, Part II(2), with few applicable
safeguards.
$0
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.
PTE 86-128 Supporting Statementfinal.docx
Prohibited Transaction Exemption 86-128 For Securities Transactions Involving Employee Benefit Plans and Broker-Dealers