[Federal Register: December 21, 2007 (Volume 72, Number 245)]
[Notices]
[Page 72762-72763]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21de07-118]
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
Proposed Extension of Information Collection Request Submitted
for Public Comment and Recommendations; Prohibited Transaction Class
Exemption 77-4
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 and 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). 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 Employee Benefits Security
Administration (EBSA) 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.
[[Page 72763]]
DATES: Written comments must be submitted to the office listed in the
ADDRESSES section below on or before February 19, 2008.
ADDRESSES: Interested parties are invited to submit written comments
regarding the collection of information. Send comments to Mr. Gerald B.
Lindrew, Office of Policy and Research, U.S. Department of Labor,
Employee Benefits Security Administration, 200 Constitution Avenue,
NW., Room N-5718, Washington, DC 20210. Telephone: (202) 693-8410 Fax:
(202) 693-4745 (These are not toll-free numbers).
SUPPLEMENTARY INFORMATION:
I. Background
Without the relief provided by this exemption, an open-end mutual
fund would be unable to 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 to
amend their plan documents to establish new investment structures and
policies.
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 three basic disclosure requirements. The
first 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 charges to
or paid by the plan and the open-end mutual fund to the investment
advisor. The second requires that the independent fiduciary approve in
writing such purchases and sales. The third requires that the
independent fiduciary, once notified of changes in the fees, re-approve
in writing the purchase and sale of mutual fund shares.
II. Review Focus
The Department of Labor (Department) is particularly interested in
comments that:
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 submissions of responses.
III. Current Actions
The Office of Management and Budget's approval of this ICR will
expire on April 30, 2008. This notice requests comments on the
extension of the ICR. The Department is not proposing or implementing
changes to the existing ICR at this time in connection with this
extension. Comments submitted in response to this notice will be
summarized and/or included in the request for OMB approval of the
information collection request; they will also become a matter of
public record.
Agency: Department of Labor, Employee Benefits Security
Administration.
Title: Prohibited Transaction Class Exemption 77-4 for Certain
Transactions Between Investment Companies and Employee Benefit Plans.
Type of Review: Extension of currently approved collections.
OMB Numbers: 1210-0049.
Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
Total Respondents: 431.
Total Responses: 82,000.
Frequency of Response: On occasion.
Average Time Per Response: 5 minutes.
Total Annual Burden: 7,000 hours.
Dated: December 10, 2007.
Joseph S. Piacentini,
Director, Office of Policy and Research, Employee Benefits
SecurityAdministration.
[FR Doc. E7-24803 Filed 12-20-07; 8:45 am]
BILLING CODE 4510-29-P