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Release Date: February 9, 2007
Release Number: 07-232-NAT
Contact Name: Gloria Della/Peter Hong
Phone Number: 202.693.8664/202.693.4676
Washington - The U.S. Department of Labor
today announced publication in the Federal Register of an interim final
rule regarding the new statutory exemption on cross-trading in the
Pension Protection Act (PPA).
“The department is working very hard to implement
the Pension Protection Act,” said Acting Assistant Secretary of Labor
Bradford P. Campbell. “This rule implements a key provision of the PPA
that allows plans to reap the benefits of cross-trading, while ensuring
that fair and equitable procedures are in place to protect workers’
retirement assets.”
Cross-trading is a transaction in which an investment
manager uses its authority to sell a security on behalf of one client
and to buy that same security on behalf of another client. The statutory
exemption allows investment managers of plans governed by the Employee
Retirement Income Security Act to execute cross-trades if certain
conditions are met, including the adoption of written cross-trading
policies and procedures. The interim rule establishes the requirements
for the policies and procedures investment managers must adopt to engage
in cross-trades.
The interim regulation is to be published in the
February 12, 2007 Federal Register. While the rule will be effective 60
days after publication in the Federal Register, the public is invited to
submit written comments on the interim final rule. Public comments may
be mailed to the Office of Exemption Determinations, Employee Benefits
Security Administration, Room N-5700, U.S. Department of Labor,
Washington, D.C. 20210, Attention: Cross-Trading Policies and Procedures
Interim Final Rule. Public comments may also be submitted by e-mail to
e-OED@dol.gov or through the federal e-rulemaking portal at
www.regulations.gov.
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page.
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