68712 Federal Register / Vol. 79, No. 222 / Tuesday, November 18, 2014 / Notices 

Labor, Room N–1515, 200 Constitution 

Avenue NW., Washington, DC 20210. 

After considering the comments, the 

Department has decided to hold a 

hearing regarding whether the Credit 

Suisse Affiliated Entities and the Credit 

Suisse Related Entities may 

prospectively rely on PTE 84–14 on a 

permanent, conditional basis. The 

hearing will be held on January 15, 

2015, beginning at 10:00 a.m., EST, in 

Room C5320 at the Department of Labor, 

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 by December 29, 2014: (1) A 

written request to be heard; and (2) Five 

copies of an outline of the topics to be 

discussed. The topics to be discussed 

should address the effect that the 

proposed exemption, if granted, will 

have on employee benefit plans; 

including whether the proposed 

exemption is in the interest of plans and 

of their participants and beneficiaries, 

and whether the safeguards in the 

proposed exemption are adequate to 

protect the rights of participants and 

beneficiaries of such plans. 

Presenters at the hearing should be 

aware that the Department is 

particularly interested in factual 

evidence that will enable the 

Department to determine whether the 

proposed exemption is in the interest of, 

and protective of, employee benefit 

plans and IRAs. 

The request to be heard and 

accompanying outline should be sent to: 

Office of Exemption Determinations, 

Room N–5700, Employee Benefits 

Security Administration, U.S. 

Department of Labor, 200 Constitution 

Avenue NW., Washington, DC 20210, 

‘‘Attention: Application No. D–11819, 

Credit Suisse AG Exemption Hearing.’’ 

Copies of your mailed submission may 

also be sent by electronic mail to 

moffitt.betty@dol.gov or by FAX to (202) 

219–0204 by the end of the scheduled 

submission period. The notice of 

hearing, the proposed exemption, and 

any submissions received in respect of 

either will be available for public 

inspection in the Public Documents 

Room of the Employee Benefits Security 

Administration, U.S. Department of 

Labor, Room N–1515, 200 Constitution 

Avenue NW., Washington, DC 20210. 

Comments, hearing requests, and other 

submissions will also be available 

online at www.regulations.gov, at no 

charge. 

Warning: If you submit a written 

request to be heard, do not include any 

personally identifiable information 

(such as name, address, or other contact 

information) or confidential business 

information that you do not want 

publicly disclosed. All hearing requests 

may be posted on the Internet and can 

be retrieved by most Internet search 

engines. 

The Department will prepare an 

agenda indicating the order of 

presentation of oral comments. The 

Department reserves the right to restrict 

the agenda to those commenters whose 

outlines contain information that is 

within the scope of the topics to be 

discussed at the hearing. In the absence 

of special circumstances, each 

commenter will be allotted ten minutes 

in which to complete his or her 

presentation. Information about the 

agenda may be obtained on or after 

January 8, 2015, by contacting Mr. Erin 

Hesse, Office of Exemption 

Determinations, Employee Benefits 

Security Administration, U.S. 

Department of Labor, telephone (202) 

693–8546 (this is not a toll-free phone 

number). Those individuals who make 

oral comments at the hearing should be 

prepared to answer questions regarding 

their comments. The hearing will be 

transcribed. 

Notice to Interested Persons 

Within fifteen (15) calendar days of 

publication of the Notice of Public 

Hearing (the Notice) in the Federal 

Register, Credit Suisse AG shall provide 

notice to all interested persons in the 

manner agreed upon by the Applicant 

and the Department. Such notification 

will contain a copy of this Notice, as 

published in the Federal Register, and 

a copy of the notice of proposed 

exemption for Credit Suisse AG, as 

published in the Federal Register at 79 

FR 52365 on September 3, 2014. 

Notice of Public Hearing 

Notice is hereby given that a public 

hearing will be held on January 15, 

2015, regarding a proposed exemption 

from certain prohibited transaction 

restrictions of the Employee Retirement 

Income Security Act of 1974, as 

amended, and from certain taxes 

imposed by the Internal Revenue Code 

of 1986, as amended, for transactions 

involving certain affiliates of Credit 

Suisse AG and entities in which Credit 

Suisse AG owns a 5% or more interest 

but which are not themselves affiliates. 

The hearing will be held, beginning at 

10:00 a.m., EST, in Room C–5320 at the 

Department of Labor, 200 Constitution 

Avenue NW., Washington, DC 20210. 

Signed at Washington, DC, this 12th day of 

November, 2014. 

Lyssa Hall, 

Director of Exemption Determinations, 

Employee Benefits Security Administration, 

U.S. Department of Labor. 

[FR Doc. 2014–27174 Filed 11–17–14; 8:45 am] 

BILLING CODE 4510–29–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

[Application No. D–11837] 

Notice of Proposed Exemption 

Involving Credit Suisse AG Located in 

Zurich, Switzerland 

AGENCY: Employee Benefits Security 

Administration, U.S. Department of 

Labor. 

ACTION: Notice of Proposed Exemption. 

SUMMARY: This document contains a 

notice of pendency before the 

Department of Labor (the Department) of 

a proposed exemption from certain 

prohibited transaction restrictions of the 

Employee Retirement Income Security 

Act of 1974, as amended (ERISA or the 

Act), and the Internal Revenue Code of 

1986, as amended (the Code). This 

proposed exemption was developed by 

the Department on its own motion. If 

granted, the proposed exemption would 

increase, from one year to ten years, the 

period during which certain entities 

with specified relationships to Credit 

Suisse AG (hereinafter, Credit Suisse 

Affiliated QPAMs and Credit Suisse 

Related QPAMs) may rely on prohibited 

transaction class exemption (PTE) 84– 

14. 

Effective Date: If granted, this 

proposed exemption will be effective for 

the period of time starting on the date 

a final exemption, if any, is published 

in the Federal Exemption, and ending 

on the date that is ten years following 

the date a judgment of conviction 

against Credit Suisse AG for one count 

of conspiracy to violate section 7206(2) 

of the Internal Revenue Code in 

violation of Title 18, United States 

Code, Section 371 (the Conviction) is 

entered in the District Court for the 

Eastern District of Virginia in Case 

Number 1:14–cr–188–RBS. 

DATES: Written comments and requests 

for a public hearing on the proposed 

exemption should be submitted to the 

Department within 45 days from the 

date of publication of this Federal 

Register Notice. 

ADDRESSES: Comments and requests for 

a hearing should state: (1) The name, 

address, telephone number, and email 


tkelley on DSK3SPTVN1PROD with NOTICES
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1Section I(g) generally provides that ‘‘[n]either 

the QPAM nor any affiliate thereof . . . nor any 

owner . . . of a 5 percent or more interest in the 

QPAM is a person who within the 10 years 

immediately preceding the transaction has been 

either convicted or released from imprisonment, 

whichever is later, as a result of’’ certain felonies 

including income tax evasion and conspiracy or 

attempt to commit income tax evasion. 

address of the person making the 

request, and (2) the nature of the 

person’s interest in the proposed 

exemption and the manner in which the 

person would be adversely affected by 

the exemption, if granted. A hearing 

may be requested by any interested 

person and must state: (1) The name, 

address, telephone number, and email 

address of the person making the 

request; (2) the nature of the person’s 

interest in the exemption and the 

manner in which the person would be 

adversely affected by the exemption; 

and (3) a statement of the issues to be 

addressed and a general description of 

the evidence to be presented at the 

hearing. The Department will grant a 

request for a hearing made in 

accordance with the requirements above 

where a hearing is necessary to fully 

explore material factual issues 

identified by the person requesting the 

hearing. A notice of such hearing shall 

be published by the Department in the 

Federal Register. The Department may 

decline to hold a hearing where: (1) The 

request for the hearing does not meet 

the requirements above; (2) the only 

issues identified for exploration at the 

hearing are matters of law; or (3) the 

factual issues identified can be fully 

explored through the submission of 

evidence in written (including 

electronic) form. 

All written comments and requests for 

a public hearing concerning the 

proposed exemption should be directed 

to the Office of Exemption 

Determinations, Employee Benefits 

Security Administration, Room N–5700, 

U.S. Department of Labor, 200 

Constitution Avenue NW., Washington, 

DC 20210, Attention: Application No. 

D–11837. Interested persons may also 

submit comments and/or hearing 

requests to EBSA via email to 

moffitt.betty@dol.gov, by FAX to (202) 

219–0204, or online through http://

www.regulations.gov. Any such 

comments or requests should be sent by 

the end of the scheduled comment 

period. The application regarding the 

proposed exemption and the comments 

received will be available for public 

inspection in the Public Disclosure 

Room of the Employee Benefits Security 

Administration, U.S. Department of 

Labor, Room N–1515, 200 Constitution 

Avenue NW., Washington, DC 20210. 

Comments and hearing requests will 

also be made available online through 

http://www.regulations.gov and 

www.dol.gov/ebsa at no charge. 

Warning: All comments received will 

be included in the public record 

without change and will be made 

available online at http://

www.regulations.gov and www.dol.gov/

ebsa. The Department will endeavor to 

redact certain protected personal 

information, but it is possible that some 

such information may be disclosed. 

Therefore, if you submit a comment, the 

Department recommends that you 

include your name and other contact 

information in the body of your 

comment, but do not submit 

information that you consider to be 

confidential, or otherwise protected 

(such as Social Security number or an 

unlisted phone number) or confidential 

business information that you do not 

want publicly disclosed. Furthermore, if 

the Department cannot read your 

comment due to technical difficulties 

and cannot contact you for clarification, 

EBSA might not be able to consider your 

comment. Additionally, the http://

www.regulations.gov Web site is an 

‘‘anonymous access’’ system, which 

means the Department will not know 

your identity or contact information 

unless you complete the applicable 

fields or provide it in the body of your 

comment. If you send an email directly 

to the Department without going 

through http://www.regulations.gov, 

your email address will be 

automatically captured and included as 

part of the comment that is placed in the 

public record and made available on the 

Internet. 

FOR FURTHER INFORMATION CONTACT: Erin 

S. Hesse, Office of Exemption 

Determinations, Employee Benefits 

Security Administration, U.S. 

Department of Labor, telephone (202) 

693–8546. (This is not a toll-free 

number.) 

SUPPLEMENTARY INFORMATION: If this 

proposed exemption is granted, certain 

entities with specified relationships to 

Credit Suisse AG must satisfy additional 

conditions in order to rely on, for a 

period of ten years, the relief provided 

by PTE 84–14 (49 FR 9494 (March 13, 

1984), as corrected at 50 FR 41430 

(October 10, 1985), as amended at 70 FR 

49305 (August 23, 2005), and as 

amended at 75 FR 38837 (July 6, 2010)). 

The exemption is being proposed by the 

Department on its own motion. Effective 

December 31, 1978, section 102 of the 

Reorganization Plan No. 4 of 1978, 5 

U.S.C. App. 1 (1996), transferred the 

authority of the Secretary of the 

Treasury to issue administrative 

exemptions under section 4975(c)(2) of 

the Code to the Secretary of Labor. 

Summary of Facts and Representations 

1. On September 3, 2014, the 

Department published a proposed 

exemption for Application No. D– 

11819, at 79 FR 52365 (the First 

Proposed Exemption). Therein, the 

Department proposed relief for Credit 

Suisse Affiliated QPAMs and Credit 

Suisse Related QPAMs to continue to 

utilize the relief set forth in PTE 84–14 

for a period of ten years, if certain 

conditions are met, notwithstanding the 

failure of those entities to meet the 

requirement set forth in section I(g) of 

that class exemption.1 Following the 

issuance of that proposal, the 

Department received ten comments and 

four requests for a hearing. As described 

in a notice that appears elsewhere in 

today’s Federal Register, the 

Department will be holding a hearing on 

January 15, 2015, in connection with 

those requests (the Hearing). 

2. Given the upcoming Hearing and 

the possibility that new, factually 

relevant information regarding the 

transactions described in the First 

Proposed Exemption may be 

forthcoming, the Department is 

currently unable to make a final 

determination that relief for a ten year 

period is warranted. However, the 

Department is aware, based on 

representations from Credit Suisse AG, 

that plans and IRAs managed by Credit 

Suisse Affiliated QPAMs and Credit 

Suisse Related QPAMs may incur 

certain costs or losses to the extent relief 

under PTE 84–14 is suddenly 

unavailable on the date of the 

Conviction, which is tentatively 

scheduled for November 21, 2014. To 

prevent plans and IRAs from incurring 

such costs and losses, the Department is 

issuing in today’s Federal Register a 

temporary final exemption that permits 

Credit Suisse Affiliated QPAMs and 

Credit Suisse Related QPAMs to 

continue to utilize the relief in PTE 84– 

14 for one year following the 

Conviction. This one year period is 

intended to be no longer than necessary 

for the Department to determine 

whether more permanent relief (i.e., the 

ten year period described herein) is 

warranted. Any such determination will 

be based on the entirety of the record 

attributable to this proposed exemption, 

which will include comments received 

from the Hearing and any comments 

received in connection with the 

publication of this proposed exemption. 

3. In issuing the First Proposed 

Exemption, the Department had 

tentatively determined that it would be 

in the interest of affected plans and 


tkelley on DSK3SPTVN1PROD with NOTICES
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2For purposes of this proposed exemption, 

references to section 406 of ERISA should be read 

to refer as well to the corresponding provisions of 

section 4975 of the Code. 

3 49 FR 9494 (March 13, 1984), as corrected at 50 

FR 41430 (October 10, 1985), as amended at 70 FR 

49305 (August 23, 2005), and as amended at 75 FR 

38837 (July 6, 2010). 

4Section I(g) generally provides that ‘‘[n]either 

the QPAM nor any affiliate thereof . . . nor any 

owner . . . of a 5 percent or more interest in the 

QPAM is a person who within the 10 years 

immediately preceding the transaction has been 

either convicted or released from imprisonment, 

whichever is later, as a result of’’ certain felonies 

including income tax evasion and conspiracy or 

attempt to commit income tax evasion. 

IRAs to permit Credit Suisse Affiliated 

QPAMs and Credit Suisse Related 

QPAMs to continue to rely on PTE 84– 

14 for a period of ten years, to the extent 

certain additional conditions are met. 

This proposed exemption, if granted, 

would provide substantially the same 

relief described in the First Proposed 

Exemption, subject to substantially the 

same conditions. Accordingly, 

interested persons are directed to the 

First Proposed Exemption for the 

Department’s views regarding the scope 

of relief and the adequacy of the 

conditions contained herein. The 

Department notes that it will only grant 

a final exemption to the extent it first 

finds that such relief is protective of, 

and in the interest of, affected plans and 

IRAs, and administratively feasible. 

Notice to Interested Persons 

Notice of the proposed exemption (the 

Notice) will be provided to all interested 

persons within fifteen (15) days of 

publication of the Notice in the Federal 

Register. The Notice will be provided to 

all interested persons in the manner 

agreed upon by the Applicant and the 

Department. Such notification will 

contain a copy of the Notice, as 

published in the Federal Register, and 

a supplemental statement, as required, 

pursuant to 29 CFR 2570.43(a)(2). The 

supplemental statement will inform all 

interested persons of their right to 

comment on and to request a hearing 

with respect to the pending exemption. 

All written comments and/or requests 

for a hearing must be received by the 

Department within forty-five (45) days 

of the publication of the Notice in the 

Federal Register. 

All comments will be made available 

to the public. Warning: If you submit a 

comment, EBSA recommends that you 

include your name and other contact 

information in the body of your 

comment, but DO NOT submit 

information that you consider to be 

confidential, or otherwise protected 

(such as Social Security number or an 

unlisted phone number) or confidential 

business information that you do not 

want publicly disclosed. All comments 

may be posted on the Internet and can 

be retrieved by most Internet search 

engines. 

General Information 

The attention of interested persons is 

directed to the following: 

(1) The fact that a transaction is the 

subject of an exemption under section 

408(a) of the Act and/or section 

4975(c)(2) of the Code does not relieve 

a fiduciary or other party in interest or 

disqualified person from certain other 

provisions of the Act and/or the Code, 

including any prohibited transaction 

provisions to which the exemption does 

not apply and the general fiduciary 

responsibility provisions of section 404 

of the Act, which, among other things, 

require a fiduciary to discharge his 

duties respecting the plan solely in the 

interest of the participants and 

beneficiaries of the plan and in a 

prudent fashion in accordance with 

section 404(a)(1)(B) of the Act; nor does 

it affect the requirement of section 

401(a) of the Code that the plan must 

operate for the exclusive benefit of the 

employees of the employer maintaining 

the plan and their beneficiaries; 

(2) Before an exemption may be 

granted under section 408(a) of the Act 

and/or section 4975(c)(2) of the Code, 

the Department must find that the 

exemption is administratively feasible, 

in the interests of the plan and of its 

participants and beneficiaries, and 

protective of the rights of participants 

and beneficiaries of the plan; 

(3) The proposed exemption, if 

granted, will be supplemental to, and 

not in derogation of, any other 

provisions of the Act and/or the Code, 

including statutory or administrative 

exemptions and transitional rules. 

Furthermore, the fact that a transaction 

is subject to an administrative or 

statutory exemption is not dispositive of 

whether the transaction is in fact a 

prohibited transaction; and 

(4) The proposed exemption, if 

granted, will be subject to the express 

condition that the material facts and 

representations contained in the 

application are true and complete, and 

that the application accurately describes 

all material terms of the transaction 

which is the subject of the exemption. 

Proposed Exemption 

Based on the foregoing facts, and 

those published in the Notice of 

Proposed Exemption at 79 FR 52365, the 

Department is considering granting an 

exemption under the authority of 

section 408(a) of the Employee 

Retirement Income Security Act of 1974, 

as amended (ERISA), and section 

4975(c)(2) of the Internal Revenue Code 

of 1986, as amended (the Code), and in 

accordance with the procedures set 

forth in 29 CFR part 2570, Subpart B (76 

FR 66637, 66644, October 27, 2011).2

Section I: Covered Transactions 

The Credit Suisse Affiliated QPAMs 

and the Credit Suisse Related QPAMs 

shall not be precluded from relying on 

the relief provided by Prohibited 

Transaction Class Exemption (PTE) 84– 

14 3 notwithstanding the Conviction (as 

defined in Section II(c)),4 provided the 

following conditions are satisfied: 

(a) Any failure of the Credit Suisse 

Affiliated QPAMs or the Credit Suisse 

Related QPAMs to satisfy Section I(g) of 

PTE 84–14 arose solely from the 

Conviction; 

(b) The Credit Suisse Affiliated 

QPAMs and the Credit Suisse Related 

QPAMs (including officers, directors, 

agents other than Credit Suisse AG, and 

employees of such QPAMs) did not 

participate in the criminal conduct of 

Credit Suisse AG that is the subject of 

the Conviction; 

(c) The Credit Suisse Affiliated 

QPAMs and the Credit Suisse Related 

QPAMs did not directly receive 

compensation in connection with the 

criminal conduct of Credit Suisse AG 

that is the subject of the Conviction; 

(d) The criminal conduct of Credit 

Suisse AG that is the subject of the 

Conviction did not directly or indirectly 

involve the assets of any plan subject to 

Part 4 of Title I of ERISA (an ERISAcovered plan) or section 4975 of the 

Code (an IRA); 

(e) Credit Suisse AG did not provide 

any fiduciary services to ERISA-covered 

plans or IRAs, except in connection 

with securities lending services of the 

New York Branch of Credit Suisse AG, 

or act as a QPAM for ERISA-covered 

plans or IRAs; 

(f) A Credit Suisse Affiliated QPAM 

will not use its authority or influence to 

direct an ‘‘investment fund’’ (as defined 

in Section VI(b) of PTE 84–14) that is 

subject to ERISA and managed by such 

Credit Suisse Affiliated QPAM to enter 

into any transaction with Credit Suisse 

AG or engage Credit Suisse AG to 

provide additional services to such 

investment fund, for a direct or indirect 

fee borne by such investment fund 

regardless of whether such transactions 

or services may otherwise be within the 

scope of relief provided by an 

administrative or statutory exemption; 

(g) Each Credit Suisse Affiliated 

QPAM will ensure that none of its 

employees or agents, if any, that were 

involved in the criminal conduct that 

underlies the Conviction will engage in 


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Federal Register / Vol. 79, No. 222 / Tuesday, November 18, 2014 / Notices 68715 

transactions on behalf of any 

‘‘investment fund’’ (as defined in 

Section VI(b) of PTE 84–14) subject to 

ERISA and managed by such Credit 

Suisse Affiliated QPAMs; 

(h)(1) Each Credit Suisse Affiliated 

QPAM immediately develops, 

implements, maintains, and follows 

written policies (the Policies) requiring 

and reasonably designed to ensure that: 

(i) The asset management decisions of 

the Credit Suisse Affiliated QPAMs are 

conducted independently of Credit 

Suisse AG’s management and business 

activities; (ii) the Credit Suisse 

Affiliated QPAM fully complies with 

ERISA’s fiduciary duties and ERISA and 

the Code’s prohibited transaction 

provisions and does not knowingly 

participate in any violations of these 

duties and provisions with respect to 

ERISA-covered plans and IRAs; (iii) the 

Credit Suisse Affiliated QPAM does not 

knowingly participate in any other 

person’s violation of ERISA or the Code 

with respect to ERISA-covered plans 

and IRAs; (iv) any filings or statements 

made by the Credit Suisse Affiliated 

QPAM to regulators, including but not 

limited to, the Department of Labor, the 

Department of the Treasury, the 

Department of Justice, and the Pension 

Benefit Guaranty Corporation, on behalf 

of ERISA-covered plans or IRAs are 

materially accurate and complete, to the 

best of such QPAM’s knowledge at that 

time; (v) the Credit Suisse Affiliated 

QPAM does not make material 

misrepresentations or omit material 

information in its communications with 

such regulators with respect to ERISAcovered plans or IRAs, or make material 

misrepresentations or omit material 

information in its communications with 

ERISA-covered plan and IRA clients; 

(vi) the Credit Suisse Affiliated QPAM 

complies with the terms of this 

exemption; and (vii) any violations of or 

failure to comply with items (ii) through 

(vi) are corrected promptly upon 

discovery and any such violations or 

compliance failures not promptly 

corrected are reported, upon discovering 

the failure to promptly correct, in 

writing to appropriate corporate officers, 

the head of Compliance and the General 

Counsel of the relevant Credit Suisse 

Affiliated QPAM, the independent 

auditor responsible for reviewing 

compliance with the Policies, and a 

fiduciary of any affected ERISA-covered 

plan or IRA where such fiduciary is 

independent of Credit Suisse AG; 

however, with respect to any ERISAcovered plan or IRA sponsored by an 

‘‘affiliate’’ (as defined in Section VI(d) of 

PTE 84–14) of Credit Suisse AG or 

beneficially owned by an employee of 

Credit Suisse AG or its affiliates, such 

fiduciary does not need to be 

independent of Credit Suisse AG; Credit 

Suisse Affiliated QPAMs will not be 

treated as having failed to develop, 

implement, maintain, or follow the 

Policies, provided that they correct any 

instances of noncompliance promptly 

when discovered or when they 

reasonably should have known of the 

noncompliance (whichever is earlier), 

and provided that they adhere to the 

reporting requirements set forth in this 

item (vii); 

(2) Each Credit Suisse Affiliated 

QPAM immediately develops and 

implements a program of training (the 

Training), conducted at least annually 

for relevant Credit Suisse Affiliated 

QPAM asset management, legal, 

compliance, and internal audit 

personnel; the Training shall be set forth 

in the Policies and, at a minimum, 

covers the Policies, ERISA and Code 

compliance (including applicable 

fiduciary duties and the prohibited 

transaction provisions) and ethical 

conduct, the consequences for not 

complying with the conditions of this 

exemption, (including the loss of the 

exemptive relief provided herein), and 

prompt reporting of wrongdoing; 

(i)(1) Each Credit Suisse Affiliated 

QPAM submits to an audit conducted 

annually by an independent auditor, 

who has been prudently selected and 

who has appropriate technical training 

and proficiency with ERISA to evaluate 

the adequacy of, and compliance with, 

the Policies and Training described in 

paragraph (h); the first of the audits 

must be completed no later than twelve 

(12) months after the date of Conviction 

and must cover the first six-month 

period that begins on the date of 

Conviction; all subsequent audits must 

cover the following corresponding 

twelve-month periods and be completed 

no later than six (6) months after the 

period to which it applies; 

(2) The auditor’s engagement shall 

specifically require the auditor to 

determine whether each Credit Suisse 

Affiliated QPAM has developed, 

implemented, maintained, and followed 

Policies in accordance with the 

conditions of this exemption and 

developed and implemented the 

Training, as required herein; 

(3) The auditor’s engagement shall 

specifically require the auditor to test 

each Credit Suisse Affiliated QPAM’s 

operational compliance with the 

Policies and Training; 

(4) For each audit, the auditor shall 

issue a written report (the Audit Report) 

to Credit Suisse AG and the Credit 

Suisse Affiliated QPAM to which the 

audit applies that describes the steps 

performed by the auditor during the 

course of its examination. The Audit 

Report shall include the auditor’s 

specific determinations regarding the 

adequacy of the Policies and Training; 

the auditor’s recommendations (if any) 

with respect to strengthening such 

Policies and Training; and any instances 

of the respective Credit Suisse Affiliated 

QPAM’s noncompliance with the 

written Policies and Training described 

in paragraph (h) above. Any 

determinations made by the auditor 

regarding the adequacy of the Policies 

and Training and the auditor’s 

recommendations (if any) with respect 

to strengthening the Policies and 

Training of the respective Credit Suisse 

Affiliated QPAM shall be promptly 

addressed by such Credit Suisse 

Affiliated QPAM, and any actions taken 

by such Credit Suisse Affiliated QPAM 

to address such recommendations shall 

be included in an addendum to the 

Audit Report. Any determinations by 

the auditor that the respective Credit 

Suisse Affiliated QPAM has 

implemented, maintained, and followed 

sufficient Policies and Training shall 

not be based solely or in substantial part 

on an absence of evidence indicating 

noncompliance; 

(5) The auditor shall notify the 

respective Credit Suisse Affiliated 

QPAM of any instances of 

noncompliance identified by the auditor 

within five (5) business days after such 

noncompliance is identified by the 

auditor, regardless of whether the audit 

has been completed as of that date. 

Upon request, the auditor shall provide 

OED with all of the relevant workpapers 

reflecting any instances of 

noncompliance. The workpapers shall 

include an explanation of any corrective 

or remedial actions taken by the 

respective Credit Suisse Affiliated 

QPAM; 

(6) With respect to each Audit Report, 

an executive officer of the Credit Suisse 

Affiliated QPAM to which the Audit 

Report applies certifies in writing, 

under penalty of perjury, that the officer 

has reviewed the Audit Report and this 

exemption; addressed, corrected, or 

remediated any inadequacies identified 

in the Audit Report; and determined 

that the Policies and Training in effect 

at the time of signing are adequate to 

ensure compliance with the conditions 

of this exemption and with the 

applicable provisions of ERISA and the 

Code; 

(7) An executive officer of Credit 

Suisse AG reviews the Audit Report for 

each Credit Suisse Affiliated QPAM and 

certifies in writing, under penalty of 

perjury, that such officer has reviewed 

each Audit Report; 


tkelley on DSK3SPTVN1PROD with NOTICES
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5 In general terms, a QPAM is an independent 

fiduciary that is a bank, savings and loan 

association, insurance company, or investment 

adviser that meets certain equity or net worth 

requirements and other licensure requirements and 

that has acknowledged in a written management 

agreement that it is a fiduciary with respect to each 

plan that has retained the QPAM. 

(8) Each Credit Suisse Affiliated 

QPAM provides its certified Audit 

Report to the Department’s Office of 

Exemption Determinations (OED), Room 

N–5700, 200 Constitution Avenue NW., 

Washington DC 20210, no later than 30 

days following its completion, and each 

Credit Suisse Affiliated QPAM makes its 

Audit Report unconditionally available 

for examination by any duly authorized 

employee or representative of the 

Department, other relevant regulators, 

and any fiduciary of an ERISA-covered 

plan or IRA, the assets of which are 

managed by such Credit Suisse 

Affiliated QPAM; 

(j) The Credit Suisse Affiliated 

QPAMs comply with each condition of 

PTE 84–14, as amended, with the sole 

exception of the violation of Section I(g) 

that is attributable to the Conviction; 

(k) Effective from the date of 

publication of any granted exemption in 

the Federal Register, with respect to 

each ERISA-covered plan or IRA for 

which a Credit Suisse Affiliated QPAM 

provides asset management or other 

discretionary fiduciary services, each 

Credit Suisse Affiliated QPAM agrees: 

(1) To comply with ERISA and the 

Code, as applicable to the particular 

ERISA-covered plan or IRA, and refrain 

from engaging in prohibited 

transactions; (2) not to waive, limit, or 

qualify the liability of the Credit Suisse 

Affiliated QPAM for knowingly 

violating ERISA or the Code or engaging 

in prohibited transactions; (3) not to 

require the ERISA-covered plan or IRA 

(or sponsor of such ERISA-covered plan 

or beneficial owner of such IRA) to 

indemnify the Credit Suisse Affiliated 

QPAM for violating ERISA or engaging 

in prohibited transactions, except for 

violations or prohibited transactions 

caused by an error, misrepresentation, 

or misconduct of a plan fiduciary or 

other party hired by the plan fiduciary 

who is independent of Credit Suisse 

AG; (4) not to restrict the ability of such 

ERISA-covered plan or IRA to terminate 

or withdraw from its arrangement with 

the Credit Suisse Affiliated QPAM; and 

(5) not to impose any fees, penalties, or 

charges for such termination or 

withdrawal with the exception of 

reasonable fees, appropriately disclosed 

in advance, that are specifically 

designed to prevent generally 

recognized abusive investment practices 

or specifically designed to ensure 

equitable treatment of all investors in a 

pooled fund in the event such 

withdrawal or termination may have 

adverse consequences for all other 

investors, provided that such fees are 

applied consistently and in like manner 

to all such investors. Within six (6) 

months of the date of publication of a 

granted exemption in the Federal 

Register, each Credit Suisse Affiliated 

QPAM will provide a notice to such 

effect to each ERISA-covered plan or 

IRA for which a Credit Suisse Affiliated 

QPAM provides asset management or 

other discretionary fiduciary services; 

(l) If a final exemption is granted in 

the Federal Register, each Credit Suisse 

Affiliated QPAM will maintain records 

necessary to demonstrate that the 

conditions of this exemption have been 

met for six (6) years following the date 

of any transaction for which such Credit 

Suisse Affiliated QPAM relies upon the 

relief in the exemption; 

(m)(1) Each sponsor of an ERISAcovered plan and each beneficial owner 

of an IRA invested in an investment 

fund managed by a Credit Suisse 

Affiliated QPAM, or the sponsor of an 

investment fund in any case where a 

Credit Suisse Affiliated QPAM acts only 

as a sub-advisor to the investment fund; 

(2) each entity that may be a Credit 

Suisse Related QPAM; and (3) each 

ERISA-covered plan for which the New 

York Branch of Credit Suisse AG 

provides fiduciary securities lending 

services, receives a notice of the 

proposed exemption along with a 

separate summary describing the facts 

that led to the Conviction, which has 

been submitted to the Department, and 

a prominently displayed statement that 

the Conviction results in a failure to 

meet a condition in PTE 84–14; 

(n) A Credit Suisse Affiliated QPAM 

will not fail to meet the terms of this 

exemption solely because a Credit 

Suisse Related QPAM or a different 

Credit Suisse Affiliated QPAM fails to 

satisfy a condition for relief under this 

exemption. A Credit Suisse Related 

QPAM will not fail to meet the terms of 

this exemption solely because Credit 

Suisse AG, a Credit Suisse Affiliated 

QPAM, or a different Credit Suisse 

Related QPAM fails to satisfy a 

condition for relief under this 

exemption. 

Section II: Definitions 

(a) The term ‘‘Credit Suisse Affiliated 

QPAM’’ means a ‘‘qualified professional 

asset manager’’ (as defined in section 

VI(a) 5 of PTE 84–14) that relies on the 

relief provided by PTE 84–14 and with 

respect to which Credit Suisse AG is a 

current or future ‘‘affiliate’’ (as defined 

in section VI(d) of PTE 84–14). The term 

‘‘Credit Suisse Affiliated QPAM’’ 

excludes the parent entity, Credit Suisse 

AG. 

(b) The term ‘‘Credit Suisse Related 

QPAM’’ means any current or future 

‘‘qualified professional asset manager’’ 

(as defined in section VI(a) of PTE 84– 

14) that relies on the relief provided by 

PTE 84–14, and with respect to which 

Credit Suisse AG owns a direct or 

indirect five percent or more interest, 

but with respect to which Credit Suisse 

AG is not an ‘‘affiliate’’ (as defined in 

section VI(d) of PTE 84–14). 

(c) The term ‘‘Conviction’’ means the 

judgment of conviction against Credit 

Suisse AG for one count of conspiracy 

to violate section 7206(2) of the Internal 

Revenue Code in violation of Title 18, 

United States Code, Section 371, which 

is scheduled to be entered in the District 

Court for the Eastern District of Virginia 

in Case Number 1:14-cr-188–RBS. 

Signed at Washington, DC, this 12th day of 

November, 2014. 

Lyssa Hall, 

Director of Exemption Determinations, 

Employee Benefits Security Administration, 

U.S. Department of Labor. 

[FR Doc. 2014–27173 Filed 11–17–14; 8:45 am] 

BILLING CODE 4510–29–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

[Prohibited Transaction Exemption 2014– 

11; Application No. D–11819] 

Notice of Exemption Involving Credit 

Suisse AG (Hereinafter, Either CSAG 

or the Applicant) Located in Zurich, 

Switzerland 

AGENCY: Employee Benefits Security 

Administration, U.S. Department of 

Labor. 

ACTION: Notice of Temporary 

Exemption. 

SUMMARY: This document contains a 

notice of temporary exemption from 

certain prohibited transaction 

restrictions of the Employee Retirement 

Income Security Act of 1974, as 

amended (ERISA or the Act), and the 

Internal Revenue Code of 1986, as 

amended (the Code). The exemption 

would affect the ability of certain 

entities with specified relationships to 

CSAG to continue to rely upon the relief 

provided by Prohibited Transaction 

Class Exemption 84–14 for a period of 

one year from the date of publication of 

this notice. 

DATES: Effective Date: This temporary 

exemption will be effective as of the 

date a judgment of conviction against 


tkelley on DSK3SPTVN1PROD with NOTICES