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Secretary of Labor Thomas E. Perez
Morgan Stanley & Co. Incorporated (MS&Co) and Morgan Stanley Trust Company (MSTC) [Notices] [06/04/1996]

EBSA (Formerly PWBA) Federal Register Notice

Morgan Stanley & Co. Incorporated (MS&Co) and Morgan Stanley Trust Company (MSTC) [06/04/1996]

[PDF Version]

Volume 61, Number 108, Page 28243-28244

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DEPARTMENT OF LABOR
[Prohibited Transaction Exemption 96-14; Exemption Application No. D-
09940]

 
Morgan Stanley & Co. Incorporated (MS&Co) and Morgan Stanley 
Trust Company (MSTC)

AGENCY: Pension and Welfare Benefits Administration, Labor (the 
Department).

ACTION: Notice of technical correction.

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    On March 12, 1996, the Department published in the Federal Register 
(61 FR 10032) a notice granting an individual exemption (the Exemption) 
on behalf of MS&Co and MSTC (collectively, the Applicants). The first 
paragraph of the Exemption states, in pertinent part, that ``the 
restrictions of sections 406(a)(1)(A) through (D) and 406(b)(1) and 
(b)(2) of the Act and the sanctions resulting from the application of 
section 4975 of the Code, by reason of section 4975(c)(1)(A) through 
(E) of the Code, shall not apply to the lending of securities to Morgan 
Stanley & Co., Incorporated (MS&Co) and to any other U.S. registered 
broker-dealers affiliated with Morgan Stanley Trust Company (the 
Affiliated Broker-Dealer, collectively, the MS Broker-Dealers) by 
employee benefit plans with respect to which MS&Co is a party in 
interest * * *''
    The Applicants believe that the aforementioned language should have 
referred to an MS Broker-Dealer, as a party in interest rather than to 
MS&Co because the exemption application contemplated that an MS Broker-
Dealer, other than MS&Co, might be borrowing securities from a plan 
with respect to which such MS Broker-Dealer, but not necessarily MS&Co, 
is a party in interest. Therefore, the Department has amended the first 
paragraph of the Exemption to read as follows:

    ``The restrictions of sections 406(a)(1)(A) through (D) and 
406(b)(1) and (b)(2) of the Act and the sanctions resulting from the 
application of section 4975 of the Code, by reason of section 
4975(c)(1)(A) through (E) of the Code, shall not apply to the 
lending of securities to Morgan Stanley & Co. Incorporated (MS&Co) 
and to any other U.S. registered broker-dealers affiliated with 
Morgan Stanley Trust Company (the Affiliated Broker-Dealer; 
collectively, the MS Broker- Dealers) by employee benefit plans with 
respect to which the MS Broker-Dealer who is borrowing such 
securities is a party

[[Page 28244]]

in interest or for which Morgan Stanley Trust Company (MSTC) acts as 
directed trustee or custodian and securities lending agent and to 
the receipt of compensation by MSTC in connection with these 
transactions, provided that the following conditions are met:''

    In addition, the Department has revised the reference to MS&Co in 
the fourth line of the fourth paragraph of Section 2 of the Written 
Comments of the Exemption (published at page 10033) to MS Broker-
Dealer.

FOR FURTHER INFORMATION CONTACT: Ms. Jan D. Broady of the Department, 
telephone (202) 219-8881. (This is not a toll-free number.)

    Signed at Washington, DC, this 30th day of May 1996.
Ivan L. Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits 
Administration, U.S. Department of Labor.
[FR Doc. 96-13914 Filed 6-3-96; 8:45 am]
BILLING CODE 4510-29-P