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News Release

U.S. Labor Department proposes amendment to class exemption on transactions determined by in-house asset managers

house asset managers

Washington – 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 proposed amendment, if granted, 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. The proposed amendment, if granted, also would 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.

Written comments and requests for a public hearing about the proposed amendment should be addressed to the: Office of Exemption Determinations, Employee Benefits Security Administration, Room N-5700, U.S. Department of Labor, 200 Constitution Avenue, NW, Washington DC 20210, Attention: PTE 96-23 Amendment.

The amendment was published in the June 14 issue of the Federal Register.

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Employee Benefits Security Administration
June 16, 2010
Release Number