[Federal Register Volume 63, Number 119 (Monday, June 22, 1998)]
[Notices]
[Pages 33960-33961]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16555]
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DEPARTMENT OF LABOR
Pension and Welfare Benefits Administration
Proposed Extension of Information Collection Request Submitted
for Public Comment and Recommendations
ACTION: Notice.
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SUMMARY: The Department of Labor, as part of its continuing effort to
reduce paperwork and respondent burden, conducts a preclearance
consultation program to provide the general public
[[Page 33961]]
and other federal agencies with an opportunity to comment on proposed
and continuing collections of information in accordance with the
Paperwork Reduction Act of 1995 (PRA 95) (44 U.S.C. 3506(c)(2)(A)).
This program helps to ensure that requested data can be provided in the
desired format, reporting burden (time and financial resources) is
minimized, collection instruments are clearly understood, and the
impact of collection requirements on respondents can be properly
assessed. Currently, the Pension and Welfare Benefits Administration is
soliciting comments concerning the proposed extension of a currently
approved collection of information, Class Exemption 77-4 for certain
transactions between investment companies and employee benefit plans. A
copy of the proposed information collection request (ICR) can be
obtained by contacting the office listed below in the addresses section
of this notice.
DATES: Written comments must be submitted to the office listed in the
ADDRESSES section below on or before August 21, 1998. The Department of
Labor is particularly interested in comments which:
Evaluate whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility;
Evaluate the accuracy of the agency's estimate of the
burden of the proposed collection of information, including the
validity of the methodology and assumptions used;
Enhance the quality, utility, and clarity of the
information to be collected;
Minimize the burden of the collection of information on
those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology, e.g., permitting
electronic submission of responses.
ADDRESSES: Interested parties are invited to submit written comments
regarding the collection of information of any or all of the Agencies.
Send comments to Mr. Gerald B. Lindrew, Office of Policy and Research,
U.S. Department of Labor, Pension and Welfare Benefits Administration,
200 Constitution Avenue, NW, Room N-5647, Washington, D.C. 20210.
Telephone: (202) 219-4782 (this is not a toll-free number).
SUPPLEMENTARY INFORMATION:
I. Background
Prohibited Transaction Class Exemption 77-4 permits the purchase
and sale by an employee benefit plan of shares of a registered, open-
end investment company (mutual fund) when a fiduciary with respect to
the plan (e.g., investment manager) is also the investment advisor for
the investment company. In absence of the exemption, certain aspects of
these transactions might be prohibited by section 406 of the Employee
Retirement Income Security Act (ERISA).
II. Current Actions
The Office of Management and Budget's approval of this ICR will
expire on September 30, 1998. This existing collection of information
should be continued because without the relief provided by this
exemption, an open-end mutual fund could not sell shares to or purchase
shares from a plan when the fiduciary with respect to the plan is also
the investment advisor for the mutual fund. As a result, plans would be
compelled to liquidate their existing investments involving such
transactions and establish new investment structures and policies, and
amend their plan documents.
In order to insure that the exemption is not abused and that the
rights of participants and beneficiaries are protected, the Department
has included in the exemption two basic disclosure requirements. The
first is intended to put the plan on notice of possible fees associated
with the redemption of open-end mutual fund shares. It requires
disclosure of any redemption fees in the current prospectus of the
open-end mutual fund (the prospectus in effect at the time of the
plan's acquisition or disposal of such shares). The second requires at
the time of the purchase or sale of such mutual fund shares that the
plan's independent fiduciary receive a copy of the current prospectus
issued by the open-end mutual fund and a full and detailed written
statement of the investment advisory fees charged to or paid by the
plan and the open-end mutual fund to the investment advisor.
Agency: Department of Labor, Pension and Welfare Benefits
Administration.
Title: Class Exemption 77-4 for Certain Transactions Between
Investment Companies and Employee Benefit Plans.
Type of Review: Extension of a currently approved collection.
OMB Numbers: 1210-0049.
Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
Total Respondents: 624.
Total Responses: 46,800.
Frequency of Response: On occasion.
Total Annual Burden: 4,212 hours.
Comments submitted in response to this notice will be summarized
and/or included in the request for Office of Management and Budget
approval of the information collection request; they will also become a
matter of public record.
Dated: June 17, 1998.
Gerald B. Lindrew,
Deputy Director, Pension and Welfare Benefits Administration, Office of
Policy and Research.
[FR Doc. 98-16555 Filed 6-19-98; 8:45 am]
BILLING CODE 4510-29-M