[Federal Register Volume 69, Number 231 (Thursday, December 2, 2004)]
[Notices]
[Pages 70160-70161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-26549]


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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.

DATES: Written comments must be submitted to the office listed in the

[[Page 70161]]

addresses section below on or before January 31, 2005.

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-5647, 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:
    <bullet> 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;
    <bullet> 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;
    <bullet> Enhance the quality, utility, and clarity of the 
information to be collected; and
    <bullet> 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 February 28, 2005. 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 hour.

    Dated: November 24, 2004.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Employee Benefits 
Security Administration.
[FR Doc. 04-26549 Filed 12-1-04; 8:45 am]
BILLING CODE 4510-29-P