ERISA-Department Of Labor Proposes To Amend Class Exemption For Transactions Involving In-House Asset Managers

According to a News Release (dated June 16, 2010), the U.S Department of Labor’s Employee Benefits Security Administration is proposing to amend Prohibited Transaction Exemption (“PTE”) 96-23. PTE 96-23 is a class exemption that allows in-house managers of large employee benefit plans to engage in a wide range of transactions with related parties.

The News Release says that the proposed amendment, if adopted, would remove numerous administrative burdens that have been cited by practitioners, and would expand relief under the class exemption to include certain transactions not currently permitted. It would also address practitioner uncertainty that exists regarding certain provisions contained in the class exemption. Among other things, the proposed amendment clarifies the department’s views and expectations regarding the class exemption’s annual audit and written report requirements. The application of these requirements will further enhance the participant protections embodied in the class exemption.

The proposed amendment to PTE 96-23 is here.

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