[Federal Register Volume 81, Number 143 (Tuesday, July 26, 2016)]
[Notices]
[Pages 48848-48849]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17555]


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DEPARTMENT OF LABOR

Office of the Secretary


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Statutory Exemption for Cross-Trading of 
Securities

ACTION: Notice.

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SUMMARY: The Department of Labor (DOL) is submitting the Employee 
Benefits Security Administration (EBSA) sponsored information 
collection request (ICR) titled, ``Statutory Exemption for Cross-
Trading of Securities,'' to the Office of Management and Budget (OMB) 
for review and approval for continued use, without change, in 
accordance with the Paperwork Reduction Act of 1995 (PRA), 44 U.S.C. 
3501 et seq. Public comments on the ICR are invited.

DATES: The OMB will consider all written comments that agency receives 
on or before August 25, 2016.

ADDRESSES: A copy of this ICR with applicable supporting documentation; 
including a description of the likely respondents, proposed frequency 
of response, and estimated total burden may be obtained free of charge 
from the RegInfo.gov Web site at http://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=201605-1210-005 (this link will only become active 
on the day following publication of this notice) or by contacting 
Michel Smyth by telephone at 202-693-4129, TTY 202-693-8064, (these are 
not toll-free numbers) or by email at [email protected].
    Submit comments about this request by mail or courier to the Office 
of Information and Regulatory Affairs, Attn: OMB Desk Officer for DOL-
EBSA, Office of Management and Budget, Room 10235, 725 17th Street, 
NW., Washington, DC 20503; by Fax: 202-395-5806 (this is not a toll-
free number); or by email: [email protected]. Commenters are 
encouraged, but not required, to send a courtesy copy of any comments 
by mail or courier to the U.S. Department of Labor-OASAM, Office of the 
Chief Information Officer, Attn: Departmental Information Compliance 
Management Program, Room N1301, 200 Constitution Avenue, NW., 
Washington, DC 20210; or by email: [email protected].

FOR FURTHER INFORMATION CONTACT: Michel Smyth by telephone at 202-693-
4129, TTY 202-693-8064, (these are not toll-free numbers) or by email 
at [email protected].

     Authority:  44 U.S.C. 3507(a)(1)(D).

SUPPLEMENTARY INFORMATION: This ICR seeks to extend PRA authority for 
the Statutory Exemption for Cross-Trading of Securities information 
collection requirements codified in regulations 29 CFR 2550.408b-19 
that implements the content requirements for written cross-trading 
policies and procedures required under Employee Retirement Income 
Security Act of 1974 (ERISA) section 408(b)(19)(H). ERISA section 
408(b)(19) exempts cross-trading transactions involving the purchase 
and sale of a security between an account holding assets of a pension 
plan and any other account managed by the same investment manager from 
ERISA sections 406(a)(1)(A) and 406(b)(2) prohibitions, provided that 
certain conditions are satisfied.
    Regulations 29 CFR 2550.408b-19 provides that policies and 
procedures for cross-trading under the statutory exemption must: (1) be 
written in a manner calculated to be understood by the plan fiduciary 
authorizing cross-trading, (2) be sufficiently detailed to facilitate a 
periodic review of all cross-trades by a compliance officer designated 
by the investment manager and a determination by the compliance officer 
that the cross-trades comply with the investment manager's written 
cross-trading policies and procedures, and (3) include, at a minimum: 
(A) a statement of general policy describing the criteria that will be 
applied by the investment manager in determining whether execution of a 
securities transaction as a cross-trade will be beneficial to both 
parties to the transaction; (B) a description of how the investment 
manager will determine the price at which the securities are cross-
traded, in a manner that is consistent with 17 CFR 270.17a-7(b) and 
Securities and Exchange Commission interpretations thereunder, 
including the identity of sources used to establish the price; (C) a 
description of how the investment manager's policies and procedures 
will mitigate any potentially conflicting division of loyalties and 
responsibilities to the parties involved in any cross-trade 
transaction; (D) a requirement that the investment manager allocate 
cross-trades among accounts participating in the cross-trading program 
in an objective and equitable manner and a description of the policies 
and procedures that will be used; (E) the identity of the compliance 
officer responsible for reviewing the investment manager's compliance 
with ERISA section 408(b)(19) and its written cross-trading policies 
and procedures and the compliance officer's qualifications for this 
position; (F) the steps to be performed by the compliance officer 
during its periodic review of the investment manager's purchases and 
sales of securities to ensure compliance with the written cross-trading 
policies and procedures; and (G) a description of the procedures by 
which the compliance officer will determine whether the requirements of 
section 408(b)(19) are met. Pension Protection Act section 611(g) 
authorizes this information collection. See Public Law 109-280 section 
611(g)(3).
    This information collection is subject to the PRA. A Federal agency 
generally cannot conduct or sponsor a collection of information, and 
the public is generally not required to respond to an information 
collection, unless it is approved by the OMB under the PRA and displays 
a currently valid OMB Control Number. In addition, notwithstanding any 
other provisions of law, no person shall generally be subject to 
penalty for failing to comply with a collection of information that 
does not display a valid Control Number. See 5 CFR 1320.5(a) and 
1320.6. The DOL obtains OMB approval for this information collection 
under Control Number 1210-0130.
    OMB authorization for an ICR cannot be for more than three (3) 
years without renewal, and the current approval for this collection is 
scheduled to expire on July 31, 2016. The DOL seeks to extend PRA 
authorization for this information collection for three (3) more years, 
without any change to existing requirements. The DOL notes that 
existing information collection requirements submitted to the OMB 
receive a month-to-month extension while they undergo review. For 
additional substantive information about this ICR, see the related 
notice published in the Federal Register on November 23, 2015 (80 FR 
72990).
    Interested parties are encouraged to send comments to the OMB, 
Office of Information and Regulatory Affairs at the address shown in 
the ADDRESSES section within thirty (30) days of publication of this 
notice in the Federal Register. In order to help ensure appropriate 
consideration, comments should mention OMB Control Number 1210-0130. 
The OMB is particularly interested in comments that:

[[Page 48849]]

     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; and
     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.
    Agency: DOL-EBSA.
    Title of Collection: Statutory Exemption for Cross-Trading of 
Securities.
    OMB Control Number: 1210-0130.
    Affected Public: Private Sector--businesses or other for-profits 
and not-for-profit institutions.
    Total Estimated Number of Respondents: 319.
    Total Estimated Number of Responses: 2,870.
    Total Estimated Annual Time Burden: 3,333 hours.
    Total Estimated Annual Other Costs Burden: $14,000.

    Dated: July 18, 2016.
Michel Smyth,
Departmental Clearance Officer.
[FR Doc. 2016-17555 Filed 7-25-16; 8:45 am]
 BILLING CODE 4510-29-P