[Federal Register Volume 69, Number 231 (Thursday, December 2, 2004)]
[Notices]
[Pages 70157-70158]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-26546]


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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 98-54--Foreign Exchange Transactions Executed Pursuant to 
Standing Instructions

AGENCY: Employee Benefits Security Administration, Department of Labor.

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,

[[Page 70158]]

collection instruments are clearly understood, and the impact of 
collection requirements on respondents can be properly assessed. 
Currently, the Employee Benefits Security Administration is soliciting 
comments on the proposed extension of the information collection 
provisions of Prohibited Transaction Exemption 98-54 (PTE 98-54).
    A copy of the information collection request (ICR) can be obtained 
by contacting the individual shown in the ADDRESSES section of this 
notice.

DATES: Written comments must be submitted to the office shown in the 
ADDRESSES section on or before January 31, 2005.

ADDRESSES: Gerald B. Lindrew, Department of Labor, Employee Benefits 
Security Administration, 200 Constitution Avenue, NW., Washington, DC 
20210, (202) 693-8410, FAX (202) 693-4745 (these are not toll-free 
numbers).

SUPPLEMENTARY INFORMATION:

I. Background

    PTE 98-54 permits certain foreign exchange transactions between 
employee benefit plans and certain banks, broker-dealers, and domestic 
affiliates thereof, which are parties in interest with respect to such 
plans, pursuant to standing instructions. In the absence of an 
exemption, foreign exchange transactions pursuant to standing 
instructions would be prohibited under circumstances where the bank or 
broker-dealer is a party in interest or disqualified person with 
respect to the plan under the Employee Retirement Income Securities Act 
(ERISA) or the Internal Revenue Code (Code).
    The class exemption has five basic information collection 
requirements. The first requires the bank or broker-dealer to maintain 
written policies and procedures for handling foreign exchange 
transactions for plans for which it is a party in interest which ensure 
that the party acting for the bank or broker-dealer knows it is dealing 
with a plan. The second requires that the transactions are performed in 
accordance with a written authorization executed in advance by an 
independent fiduciary of the plan. The third requires that the bank or 
broker-dealer provides the authorizing fiduciary with a copy of its 
written policies and procedures for foreign exchange transactions 
involving income item conversions and de minimis purchase and sale 
transactions prior to the execution of a transaction. The fourth 
requires the bank or broker-dealer to furnish the authorizing fiduciary 
a written confirmation statement with respect to each covered 
transaction within five days of execution. The fifth requires that the 
bank or broker-dealer maintains records necessary for plan fiduciaries, 
participants, and the Department and Internal Revenue Service to 
determine whether the conditions of the exemption are being met for 
period of six years form the date of execution of a transaction.
    By requiring that records pertaining to the exempted transaction be 
maintained for six years, this ICR insures that the exemption is not 
abused, the rights of the participants and beneficiaries are protected, 
and that compliance with the exemption's conditions can be confirmed. 
The exemption affects participants and beneficiaries of the plans that 
are involved in such transactions as well as certain banks, broker-
dealers, and domestic affiliates thereof .

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 (OMB) approval of this ICR 
will expire on February 28, 2005. After considering comments received 
in response to this notice, the Department intends to submit the ICR to 
OMB for continuing approval. No change to the existing ICR is proposed 
or made at this time.
    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: Employee Benefits Security Administration, Department of 
Labor.
    Title: Prohibited Transaction Class Exemption 98-54 relating to 
Certain Employee Benefit Plan Foreign Exchange Transactions Executed 
Pursuant to Standing Instructions.
    Type of Review: Extension of a currently approved collection of 
information.
    OMB Number: 1210-0111.
    Affected Public: Individuals or households; Business or other for-
profit; Not-for-profit institutions.
    Respondents: 35.
    Responses: 8,400.
    Average Response Time: 30 minutes.
    Estimated Total Burden Hours: 4,200.
    Total Annualized Capital/Startup Costs: $0.
    Total Annual Costs (operating/maintaining systems or purchasing 
services): $0.

    Dated: November 24, 2004.
Gerald B. Lindrew,
Deputy Director, Office of Policy and Research, Employee Benefits 
Security Administration.
[FR Doc. 04-26546 Filed 12-1-04; 8:45 am]
BILLING CODE 4510-29-P