[Federal Register: December 15, 1999 (Volume 64, Number 240)] [Notices] [Page 70070-70071] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr15de99-96] ----------------------------------------------------------------------- DEPARTMENT OF LABOR Pension and Welfare Benefits Administration Cross-Trades of Securities by Investment Managers AGENCY: Pension and Welfare Benefits Administration, Labor. ACTION: Notice of hearing. ----------------------------------------------------------------------- SUMMARY: This document provides notice of a public hearing regarding standards and safeguards upon which exemptive relief should be conditioned for cross-trades of securities by investment managers with respect to any account, portfolio or fund holding ``plan assets'' subject to the fiduciary responsibility provisions of Part 4 of Title I of the Employee Retirement Income Security Act of 1974, as amended (ERISA). The public hearing will focus primarily on the area of ``active'' cross-trading of securities by investment managers. The Department is also publishing today in the Federal Register a Notice of Proposed Class Exemption relating to cross-trades of securities by ``passively'' managed funds. DATES: The hearing will be held on February 10, 2000, and on February 11th if necessary, beginning at 10 a.m. and ending at 4 p.m. each day. ADDRESSES: The hearing will be held in Room N-5437, of the Department of Labor Building, 200 Constitution Avenue, NW, Washington, DC 20210. FOR FURTHER INFORMATION CONTACT: Louis J. Campagna or E.F. Williams, Office of Exemption Determinations, Pension and Welfare Benefits Administration, U.S. Department of Labor, Room N-5649, 200 Constitution Avenue, NW, Washington, DC, 20210, (202) 219-8883 or 219-8194, respectively (these are not toll free numbers); or Michael Schloss, Plan Benefits Security Division, Office of Solicitor, (202) 219-4600, ext. 105 (not a toll-free number). SUPPLEMENTARY INFORMATION: On March 20, 1998, the Department of Labor (the Department) published a notice (the Notice) in the Federal Register (63 FR 13696) requesting information to assist it in determining upon what standards and safeguards exemptive relief for cross-trades by investment managers should be conditioned. In that Notice, the Department invited all interested persons to submit written comments concerning its request for information on or before May 19, 1998. The Department received a total of 29 written comments on the Notice, many [[Page 70071]] of which were from major industry groups and plan fiduciaries. In response, in part, to the information received by the Department to the Notice, the Department has published in today's Federal Register a separate notice of proposed class exemption which would, if granted, provide an exemption for cross-trades of securities by Index and Model- Driven Funds. In the notice of proposed class exemption, the Department states that it is not proposing relief for cross-trades of securities by actively-managed plan accounts or funds at the present time. In actively-managed programs, trading decisions are made by individuals that have been hired to select particular securities as professional investment managers for ``actively-managed'' accounts. The Department notes in the proposed class exemption that information obtained from investment managers in response to the Notice regarding cross-trade practices and procedures for actively-managed accounts will be considered separately. In view of the importance of this issue, the Department has decided to hold a public hearing regarding potential future individual or class exemptions for the cross-trades of securities by investment managers for actively-managed plan accounts or pooled funds containing ``plan assets'' subject to Title I of ERISA. This hearing will be held on February 10, 2000, and February 11th if necessary, beginning at 10 a.m. and ending at 4 p.m., in Room N-5437 of the Department of Labor Building, 200 Constitution Avenue, NW, Washington, DC 20210. Any interested person who wishes to be assured of an opportunity to present oral comments at the hearing should submit the following information by January 20, 2000: (1) A written request to be heard; and (2) An outline (preferably five copies) of the topics to be discussed, indicating the time allocated to each topic. The request to be heard and accompanying outline should be sent to the Office of Exemption Determinations, Pension and Welfare Benefits Administration, U.S. Department of Labor, Room N-5649, 200 Constitution Avenue, NW, Washington, DC 20210, and marked ``Attention: Cross-Trades of Securities by Investment Managers Hearing.'' Individuals who did not file written comments regarding the Notice published by the Department in the Federal Register on March 20, 1998 may nonetheless submit a request to make oral comments at the hearing. The Department will prepare an agenda indicating the order of presentation of oral comments at the hearing. In the absence of special circumstances, each commentator will be allotted fifteen minutes in which to complete his or her presentation and answer questions that may be posed by a panel of Pension and Welfare Benefits Administration employees. Information about the agenda may be obtained on or after January 27, 2000, by telephoning Fil Williams of the Office of Exemption of Determinations at (202) 219-8194 (this is not a toll free number). Individuals not listed in the agenda will be allowed to make oral comments at the hearing to the extent time permits. Those individuals who make oral comments at the hearing should be prepared to answer questions regarding their comments. The hearing will be transcribed. Individuals with disabilities, who need special accommodations, should notify Mr. Williams on or before January 20, 2000. Notice of Public Hearing Notice is hereby given that a public hearing will be held on February 10, 2000, and February 11th if necessary, regarding potential future individual or class exemptions for cross-trades of securities by investment managers for actively-managed plan accounts or pooled funds containing ``plan assets'' subject to ERISA. The hearing will be held beginning at 10 a.m. in Room N-5437 of the Department of Labor Building, 200 Constitution Avenue, NW, Washington, DC, 20210. Signed at Washington, DC, this 9th day of December, 1999. Alan D. Lebowitz, Deputy Assistant Security of Program Operations, Pension and Welfare Benefits Administration, U.S. Department of Labor. [FR Doc. 99-32403 Filed 12-14-99; 8:45 am] BILLING CODE 4510-29-P