23756 Federal Register / Vol. 77, No. 77 / Friday, April 20, 2012 / Notices 

DEPARTMENT OF LABOR 

Office of the Secretary 

Agency Information Collection 

Activities; Submission for OMB 

Review; Comment Request; 

Registration for EFAST–2 Credentials 

ACTION: Notice. 

SUMMARY: The Department of Labor 

(DOL) is submitting the Employee 

Benefits Security Administration 

(EBSA) sponsored information 

collection request (ICR) titled, 

‘‘Registration for EFAST–2 Credentials,’’ 

to the Office of Management and Budget 

(OMB) for review and approval for 

continued use in accordance with the 

Paperwork Reduction Act (PRA) of 1995 

(44 U.S.C. 3501 et seq.). 

DATES: Submit comments on or before 

May 21, 2012. 

ADDRESSES: A copy of this ICR with 

applicable supporting documentation; 

including a description of the likely 

respondents, proposed frequency of 

response, and estimated total burden 

may be obtained from the RegInfo.gov 

Web site, http://www.reginfo.gov/ 

public/do/PRAMain, on the day 

following publication of this notice or 

by contacting Michel Smyth by 

telephone at 202–693–4129 (this is not 

a toll-free number) or sending an email 

to DOL_PRA_PUBLIC@dol.gov. 

Submit comments about this request 

to the Office of Information and 

Regulatory Affairs, Attn: OMB Desk 

Officer for DOL–EBSA, Office of 

Management and Budget, Room 10235, 

Washington, DC 20503, Telephone: 

202–395–6929/Fax: 202–395–6881 

(these are not toll-free numbers), email: 

OIRA_submission@omb.eop.gov. 

FOR FURTHER INFORMATION CONTACT: 

Michel Smyth by telephone at 202–693– 

4129 (this is not a toll-free number) or 

by email at DOL_PRA_PUBLIC@dol.gov. 

SUPPLEMENTARY INFORMATION: The 

Employee Retirement Income Security 

Act (ERISA) Filing Acceptance System 2 

(EFAST–2) is an all-electronic system 

designed by the Department of Labor, 

Internal Revenue Service, and Pension 

Benefit Guaranty Corporation to 

simplify and expedite the submission, 

receipt, and processing of the Form 

5500 and Form 5500–SF. These forms 

must be electronically filed each year by 

employee benefit plans to satisfy annual 

reporting requirements under the ERISA 

and the Internal Revenue Code. In order 

to file electronically, employee benefit 

plan filing authors, Schedule authors, 

filing signers, Form 5500 transmitters, 

and entities developing software to 

complete and/or transmit the Form 5500 

are required to register for EFAST–2 

credentials through the EFAST–2 Web 

site. 

This information collection is subject 

to the PRA. A Federal agency generally 

cannot conduct or sponsor a collection 

of information, and the public is 

generally not required to respond to an 

information collection, unless it is 

approved by the OMB under the PRA 

and displays a currently valid OMB 

Control Number. In addition, 

notwithstanding any other provisions of 

law, no person shall generally be subject 

to penalty for failing to comply with a 

collection of information if the 

collection of information does not 

display a valid OMB Control Number. 

See 5 CFR 1320.5(a) and 1320.6. The 

DOL obtains OMB approval for this 

information collection under OMB 

Control Number 1210–0117. The current 

OMB approval is scheduled to expire on 

April 30, 2012; however, it should be 

noted that existing information 

collection requirements submitted to the 

OMB receive a month-to-month 

extension while they undergo review. 

For additional information, see the 

related notice published in the Federal 

Register on December 7, 2011. 

Interested parties are encouraged to 

send comments to the OMB, Office of 

Information and Regulatory Affairs at 

the address shown in the ADDRESSES

section within 30 days of publication of 

this notice in the Federal Register. In 

order to help ensure appropriate 

consideration, comments should 

reference OMB Control Number 1210– 

0117. The OMB 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 submission of 

responses. 

Agency: DOL–EBSA. 

Title of Collection: Registration for 

EFAST–2 Credentials. 

OMB Control Number: 1210–0117. 

Affected Public: Private Sector— 

Businesses or Other For-Profits. 

Total Estimated Number of 

Respondents: 400,000. 

Total Estimated Number of 

Responses: 400,000. 

Total Estimated Annual Burden 

Hours: 133,333. 

Total Estimated Annual Other Costs 

Burden: $0. 

Dated: April 16, 2012. 

Michel Smyth, 

Departmental Clearance Officer. 

[FR Doc. 2012–9517 Filed 4–19–12; 8:45 am] 

BILLING CODE 4510–29–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

[Prohibited Transaction Exemption 2012– 

10; Exemption Application No. D–11655] 

Grant of Individual Exemption 

Involving Renaissance Technologies, 

LLC (Renaissance, or the Applicant) 

Located in New York, NY 

AGENCY: Employee Benefits Security 

Administration, U.S. Department of 

Labor. 

ACTION: Grant of individual exemption. 

SUMMARY: This document contains an 

individual 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 

transactions involve Renaissance and 

certain of Renaissance’s privately 

offered collective investment vehicles 

managed by Renaissance, comprised 

almost exclusively of proprietary funds. 

The individual exemption affects the 

individual retirement accounts 

beneficially owned by Renaissance’s 

employees, certain of Renaissance’s 

owners, and the spouses of such 

employees and owners. 

DATES: Effective Date: The individual 

exemption is effective as of January 1, 

2012. 

FOR FURTHER INFORMATION CONTACT: 

Warren Blinder of the Department, 

telephone (202) 693–8553. (This is not 

a toll-free number.) 

SUPPLEMENTARY INFORMATION: On 

January 20, 2012, the Department of 

Labor (the Department) published a 

notice of proposed individual 

exemption in the Federal Register at 77 

FR 3038 from the restrictions of section 

406(a)(1)(A) and (D) of the Act and the 

sanctions resulting from the application 

of section 4975 of the Code, by reason 


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1For purposes of this exemption, references to 

the provisions of Title I of the Act, unless otherwise 

specified, refer also to the corresponding provisions 

of the Code. 

2The Applicant notes that a security may become 

illiquid, for example, if trading in it is suspended. 

3The Applicant states that Renaissance solicited 

the opinion of two major independent audit firms, 

which advised that this was an appropriate solution 

to the issue. 

of section 4975(c)(1)(A) and (D) of the 

Code.1 The proposed exemption was 

requested by Renaissance pursuant to 

section 408(a) of the Act and section 

4975(c)(2) of the Code, and in 

accordance with the procedures set 

forth in 29 CFR Part 2570, Subpart B (76 

FR 66637, October 27, 2011). Effective 

December 31, 1978, section 102 of the 

Reorganization Plan No. 4 of 1978, (5 

USC App. 1 (1996)) transferred the 

authority of the Secretary of the 

Treasury to issue exemptions of the type 

requested to the Secretary of Labor. 

Accordingly, this final individual 

exemption is being issued solely by the 

Department. 

Written Comments 

The Department invited all interested 

persons to submit written comments 

with respect to the proposed exemption 

on or before February 24, 2012. During 

the comment period, the Department 

received no comments or inquiries from 

Participants. However, the Department 

received a written comment from the 

Applicant, which supported the 

exemption and requested certain 

modifications and/or clarifications to 

the General Conditions and the 

Definitions sections of the proposed 

exemption and to the Summary of Facts 

and Representations (the Summary) of 

the proposed exemption. 

Following is a discussion of the 

Applicant’s comments, including the 

responses made by the Department to 

address the issues raised therein. Any 

capitalized terms herein not otherwise 

defined have the meanings ascribed to 

them in the Summary. 

A. Clarifications Concerning Certain 

Conditions of Relief 

The Applicant requested 

modifications and/or corrections to 

certain General Conditions of the 

proposed exemption relating to: (1) The 

descriptions of the investor restrictions 

for individuals investing in the New 

Medallion Funds; (2) New 

Kaleidoscope’s redemption policy; (3) 

the description of the valuation policy 

for the Funds’ investment holdings; (4) 

the operation of a Participant’s 

Investment Allocation; (5) the 

disclosures required to be given by 

Renaissance to Participants in 

connection with their investment in the 

New Medallion Vehicles; and (6) the 

legal, jurisdictional, venue, and service 

requirements attributable to Renaissance 

in connection with a Participant’s 

investment in the New Medallion 

Vehicles. 

1. Descriptions of Investor 

Restrictions. Section III(c) of the 

proposed exemption provides that ‘‘[a]n 

interest in a New Medallion Vehicle is 

only available to IRA Holders who 

satisfy the securities law-based investor 

qualifications applicable to all investors 

in such New Medallion Vehicle.’’ 

However, in its comment, the Applicant 

suggested a modification of Section 

III(c) to clarify that some relevant 

investor restrictions come from other 

sources, such as the Commodity Futures 

Trading Act, in order to be more precise. 

Therefore, the Applicant suggests that 

the phrase ‘‘and other regulatory’’ 

should be inserted after ‘‘securities 

law.’’ In addition, the Applicant 

suggests a corresponding change to the 

last sentence of Representation 61 of the 

Summary, in order to reflect the 

foregoing modification made to Section 

III(c) of the proposed exemption. 

The Department has revised Section 

III(c) of the final exemption to reflect the 

Applicant’s suggested revision, to read 

as follows: ‘‘An interest in a New 

Medallion Vehicle is only available to 

IRA Holders who satisfy the securities 

law and other regulatory-based investor 

qualifications applicable to all investors 

in such New Medallion Vehicle.’’ 

Furthermore, the Department takes note 

of the Applicant’s suggested 

corresponding change to Representation 

61 of the Summary. 

2. Redemption Policy for New 

Kaleidoscope. Section III(f) of the 

proposed exemption provides that, ‘‘[a]n 

IRA’s interest in a New Medallion 

Vehicle is redeemable, in whole or in 

part, without the payment of any 

redemption fee or penalty, no less 

frequently than on a quarterly basis 

upon no less than 10 days advance 

written notice.’’ However, the Applicant 

notes that such condition, as written, 

does not reflect the actual operation of 

New Kaleidoscope, which requires 45 

days’ notice. Therefore, the Applicant’s 

comment requested that the following 

phrase be appended to the end of the 

sentence: ‘‘Except in the case of New 

Kaleidoscope, where 45 days’ notice is 

required.’’ In addition, the Applicant’s 

comment suggested a corresponding 

change to Representation 76(f) in order 

to conform the Summary to the 

foregoing modification made to Section 

III(f) of the proposed exemption. 

The Department has modified Section 

III(f) of the final exemption to reflect the 

Applicant’s suggested revision, to read 

as follows: ‘‘An IRA’s interest in a New 

Medallion Vehicle is redeemable, in 

whole or in part, without the payment 

of any redemption fee or penalty, no 

less frequently than on a quarterly basis 

upon no less than 10 days advance 

written notice, except in the case of 

New Kaleidoscope, for which 45 days’ 

notice is required.’’ Furthermore, the 

Department takes note of the 

Applicant’s suggested corresponding 

modification to Representation 76(f) of 

the Summary. 

3. Funds’ Valuation Policy. Section 

III(g) of the proposed exemption 

provides that ‘‘[a]n acquisition or 

redemption of an IRA’s interest in a 

New Medallion Vehicle is made for fair 

market value,’’ and Subparagraphs (1) 

through (4) of Section III(g) further 

describe how fair market value is to be 

determined for each of equity securities, 

fixed-income securities, options, and 

investments for which current market 

quotations are not readily available, 

respectively. In its comment, the 

Applicant requested modifications to 

Section III(g) relating to the 

determination of ‘‘fair market value’’ for 

equity securities and fixed-income 

securities. 

The Applicant states that, with 

respect to equity securities, there was a 

change to the Applicant’s valuation 

policy that occurred in June 2011 that 

corrected a flaw for the valuation of 

illiquid equity securities. According to 

the Applicant, although Renaissance 

seldom holds illiquid equity securities 

for the Medallion Funds, immediately 

prior to making this change, a few 

securities became illiquid, and did not 

generate any bids or offers on days 

when valuations were needed; so that 

the methodology described in Section 

III(g) of the proposed exemption was 

difficult to apply.2

The Applicant states that the 

valuation policy described in Section 

III(g) of the proposed exemption 

contemplates the potential need to value 

an illiquid security, and provides for the 

use of the last bid or ask price for the 

security on the day of the valuation. 

However, the Applicant notes that the 

standard is flawed in that it does not 

work if there is no bid or ask on the 

valuation date. The Applicant 

represents that, after Renaissance 

encountered this flaw in 2011, it 

adopted a policy of using the last price 

at which the security traded, discounted 

depending on the time between the 

trade date and the valuation date.3

Accordingly, the Applicant’s 

comment suggested that Section III(g)(1) 

pertaining to equity securities, should 


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4The Applicant represents that, on a monthly 

basis, from the implementation of the above policy 

in June 2011 through the end of 2011, illiquid 

securities in the Medallion Funds, at the most, 

represented less than 8/100ths of one percent of the 

number of positions (December) and slightly over 

5/100ths of one percent of the value of the portfolio 

(June). 

5The Applicant notes that, in the context of fixed 

income securities, a ‘‘firm quote’’ or the ‘‘price’’ of 

a security given by a dealer or pricing service is 

equivalent to the ‘‘bid price’’ of such security. 

be modified as follows in order to 

describe Renaissance’s current valuation 

policy more accurately: 

Equity securities are valued at their last 

reported sale price or official closing price on 

the market on which such securities 

primarily trade using sources independent of 

Renaissance and the issuer. If no sale of such 

equity security was reported on that date, the 

market value will be the last reported sale 

price on the most recent date for which a 

price is available, and will reflect a discount 

if such date occurred more than 30 days 

before. 

According to the Applicant, since 

Renaissance generally does not invest in 

illiquid securities, the modification of 

the valuation policy for illiquid equity 

securities is, as a practical matter, a de 

minimis change with an immaterial 

effect on the operation of Medallion and 

the valuation of any of its investments.4

The Applicant notes that the change to 

the valuation policy simply solves a 

minor problem that had come to light 

through actual experience. Furthermore, 

the Applicant maintains that the change 

is wholly to the benefit of investors, 

since it provides a methodology which 

can always be applied to illiquid equity 

securities. Since bid and ask prices are 

generally not available for these 

securities, they could not have been 

valued at all but for this change in 

policy. 

The Applicant represents that the 

language describing the valuation of 

fixed income securities in Section 

III(g)(2) of the proposed exemption is a 

more general description of the 

valuation policy, and its comment 

suggested changes that are intended to 

clarify certain aspects concerning the 

determination of the prices of such 

securities. The Applicant notes that this 

suggested modification does not reflect 

a change in the substance of this policy. 

The Applicant explains that 

Renaissance’s valuation policy that is 

applicable to fixed income securities 

has been in effect since August 2008. 

According to the Applicant, this policy 

provides more specificity concerning 

the determination of ‘‘bid’’ prices in 

various circumstances than that which 

the proposed exemption describes. In 

this regard, the Applicant notes that the 

valuation policy prioritizes the use of 

independent pricing services, where 

possible, as distinguished from the use 

of independent providers. The 

Applicant maintains that its suggested 

modification is intended to illuminate 

this prioritization. Accordingly, in order 

to clarify the prioritization of the 

sources of bid prices and avoid creating 

the impression that there is no 

prioritization between the use of 

independent pricing services and 

providers, the Applicant suggests a 

clarifying modification to Section 

III(g)(2), as follows: 

Fixed income securities are valued at the 

‘‘bid’’ price of such securities at the close of 

business on the relevant valuation date. 

These prices are determined (i) where 

available, on the basis of prices provided by 

independent pricing services that determine 

valuations based on market transactions for 

comparable securities; and (ii) if independent 

pricing services are not available, on the 

basis of quotes obtained from multiple 

independent providers that are either U.S.- 

registered or foreign broker-dealers, which 

are registered and subject to the laws of their 

respective jurisdiction, or banks. 

The Applicant states that this 

suggested modification is a clarification 

of methodology but not a change from 

the valuation policy as described in the 

proposed exemption, i.e., fixed income 

securities are valued on the basis of 

their bid prices where possible.5 The 

Applicant explains that the use of 

‘‘bids’’ in pricing fixed income 

instruments is the relevant point being 

made in its description of how fixed 

income securities are valued and that 

the methodology by which those bids 

are determined is secondary. Further, 

the Applicant asserts that these changes 

would make the description of the 

valuation policy clearer. 

In addition, the Applicant’s comment 

suggested an additional, corresponding 

change to Representation 67 in the 

Summary, in order to conform the 

Summary to the foregoing modifications 

made to Section III(g) of the proposed 

exemption. 

The Department has modified the 

final exemption to reflect the 

Applicant’s suggested revisions to 

Section III(g)(1) and (2), to read as 

described above. Furthermore, the 

Department takes note of the 

Applicant’s suggested corresponding 

changes to Representation 67 of the 

Summary. 

4. Participant’s Investment 

Allocation. Section III(i) of the proposed 

exemption provides that ‘‘[i]n the event 

that a redemption of any portion of an 

IRA Holder’s interest in any of the 

Medallion Funds becomes necessary as 

the result of a reduction of the 

Investment Allocation applicable to an 

IRA Holder, then, at such IRA Holder’s 

election, a redemption is first made of 

the IRA Holder’s taxable investments (if 

any) prior to his or her IRA’s interest in 

a New Medallion Vehicle.’’ The 

Applicant’s comment requested a 

change to Section III(i) in order to 

clarify that only Participants (i.e., 

employees and certain former 

employees who remain owners of 

Renaissance) have Investment 

Allocations, which can be shared with 

their spouses. In this regard, the 

Applicant’s comment suggested that 

Section III(i) should read as follows: 

In the event that a redemption of any 

portion of an interest in a New Medallion 

Vehicle held by an IRA becomes necessary as 

the result of a reduction of the Investment 

Allocation applicable to a Participant, then, 

at an IRA Holder’s election, a redemption 

may first be made of the IRA Holder’s taxable 

investments (if any) prior to his or her IRA’s 

interest in a New Medallion Vehicle. 

The Department has modified the 

final exemption to reflect the 

Applicant’s suggested revision, to read 

as described above. 

5. Participant Disclosures. Section 

III(l) of the proposed exemption 

provides that, in advance of the initial 

investment by an IRA in a New 

Medallion Vehicle, IRA Holders will 

generally receive (1) a copy of the 

proposed exemption and the final 

exemption, (2) a private offering 

memorandum (and the same disclosures 

and information provided to other 

investors in such Funds), and (3) all 

reasonably available relevant 

information as such IRA Holder may 

request. In its comment, the Applicant 

explained that it is concerned about the 

operation of subparagraph (3) of Section 

III(l), as it could be read to require 

Renaissance to solicit requests for 

additional information from IRA 

Holders, and to distribute such 

information with the materials 

described in subparagraphs (1) and (2) 

of Section III(l). Therefore, the 

Applicant’s comment requested that 

subparagraph (3) of Section III(l) should 

be revised to read as follows: 

Following receipt of the information in (1) 

and (2), an IRA Holder will receive all 

reasonably available relevant information as 

such IRA Holder may request. 

The Department has modified the 

final exemption to reflect the 

Applicant’s suggested revision to 

Section III(l)(3) of the proposed 

exemption, to read as described above. 

6. Legal and Other Requirements. 

Section III(n) of the proposed exemption 

provides that Renaissance, the New 

Medallion Vehicles, and each Fund or 


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vehicle in which, or through which, a 

New Medallion Vehicle invests, will 

agree to certain legal, jurisdictional, 

service of process, and venue 

requirements. The Applicant’s comment 

suggested that the language of Section 

III(n) of the proposed exemption should 

be modified in order to reflect requested 

modifications to the definitions of the 

New Medallion Vehicles in Sections 

IV(j) through (m) of the proposed 

exemption. 

Furthermore, the Applicant notes that 

the definition of ‘‘Funds’’ in Section 

IV(d) includes the existing collective 

investment vehicles managed by 

Renaissance, but not the New Medallion 

Vehicles or New RIEF/RIFF. The 

Applicant explains that two of the New 

Medallion Vehicles, New Medallion FF 

and New Medallion FF RMPRF, will 

invest in the Medallion Master Funds, 

and the other, New Kaleidoscope, will 

invest in New Medallion FF RMPRF, 

and New RIEF/RIFF. Accordingly, the 

Applicant suggests that the consent 

described in Section III(n) of the 

proposed exemption should be given by 

those Funds managed by Renaissance in 

which IRAs may invest, directly or 

indirectly, under the proposed 

exemption. Thus, to avoid obtaining 

consents from collective investment 

vehicles managed by Renaissance that 

are not involved in the covered 

transactions, the Applicant suggests that 

the introductory language of Section 

III(n) should be revised to read as 

follows: 

Prior to the acquisition by an IRA of an 

interest in a New Medallion Vehicle or each 

Medallion Master Fund, another New 

Medallion Vehicle, or New RIEF/RIFF in 

which, or through which, a New Medallion 

Vehicle invests, Renaissance or the 

applicable New Medallion Vehicle manager 

(the New Medallion Vehicle Manager), with 

respect to any such acquisition by an IRA 

* * *. 

In addition, the Applicant’s comment 

suggested additional, corresponding 

changes to the last sentence of 

Representation 75 and Representation 

76(m) of the Summary, in order to 

conform the Summary to the foregoing 

modification made to Section III(n) of 

the proposed exemption. 

The Department has revised the final 

exemption to reflect the Applicant’s 

suggested revisions to Section III(n) of 

the proposed exemption. The 

Department also notes the suggested 

corresponding change to Representation 

75 of the Summary. 

B. Clarifications Relating to Certain 

Definitions in the Proposed Exemption 

The Applicant’s requested 

clarifications and/or corrections to the 

Definitions section of the proposed 

exemption related to: (1) An update in 

the number of Funds managed by 

Renaissance; (2) the description of the 

Participants’ Investment Allocation; (3) 

an update to the definition of 

‘‘Kaleidoscope Fund’’ to conform to its 

offering documents; (4) an update to the 

definitions of the ‘‘New Medallion 

Vehicles’’ to conform to their offering 

documents and the addition of a defined 

term for another new Medallion 

investment vehicle; (5) the inclusion of 

any current employee of Renaissance in 

the definition of ‘‘Participant;’’ (6) the 

inclusion of an additional individual in 

the definition of ‘‘Permitted Owners;’’ 

and (7) the composition of the 

Renaissance Valuation Committee. 

1. Funds’ Update. Section IV(d) of the 

proposed exemption provides that the 

term ‘‘Fund’’ or ‘‘Funds’’ means, ‘‘* * * 

the nine privately offered U.S. and nonU.S. collective investment vehicles 

managed by Renaissance * * * and the 

five privately offered U.S. and non-U.S. 

collective investment vehicles * * *.’’ 

The Applicant’s comment stated that 

Renaissance currently manages six, not 

five, non-Proprietary Funds, and further 

requested that the definition of ‘‘Fund’’ 

or ‘‘Funds’’ should be modified to 

reflect such change. 

The Department notes the Applicant’s 

suggested revision to Section IV(d) of 

the proposed exemption and has 

modified the final exemption to read as 

follows: 

The term ‘‘Fund’’ or ‘‘Funds’’ means, 

individually or collectively, the nine 

privately offered U.S. and non-U.S. collective 

investment vehicles managed by 

Renaissance, comprised almost exclusively of 

assets of Renaissance and its owners and 

employees (the Proprietary Funds) and the 

six privately offered U.S. and non-U.S. 

collective investment vehicles, consisting 

primarily of assets of clients of Renaissance 

(the non-Proprietary Funds). 

Furthermore, the Department notes a 

corresponding change to Representation 

3 of the Summary, wherein the 

Applicant represented that Renaissance 

is the investment manager of fourteen 

privately offered U.S. and non-U.S. 

collective investment vehicles, 

comprised of 9 Proprietary Funds and 5 

non-Proprietary Funds. 

2. Participant’s Investment Allocation 

Description. Section IV(e) of the 

proposed exemption provides that the 

term ‘‘Investment Allocation’’ means 

‘‘the permitted investment allocation in 

the Medallion Funds applicable to a 

Renaissance employee, which such 

employee and his or her Spouse may 

utilize to make investments in a 

Medallion FF or Kaleidoscope, or in an 

applicable New Medallion Vehicle 

investing in such Funds, subject to each 

such employee’s overall Investment 

Allocation limit.’’ The Applicant’s 

comment stated that the definition of 

Investment Allocation is not clear, and 

suggested that the definition of 

‘‘Investment Allocation’’ should be 

revised to read as follows: 

The term ‘‘Investment Allocation’’ means 

the permitted investment allocation limit in 

the Medallion Funds applicable to a 

Renaissance employee, which such employee 

and his or her Spouse may utilize to make 

investments in a Medallion FF or 

Kaleidoscope, or in an applicable New 

Medallion Vehicle. 

In addition, the Applicant’s comment 

suggested a corresponding change to 

Representations 63 and 64 of the 

Summary in order to conform the 

Summary to the foregoing modification 

made to Section IV(e) of the proposed 

exemption. 

The Department has modified the 

final exemption as described above, to 

reflect the Applicant’s suggested 

revisions to Section IV(e) of the 

proposed exemption. In addition, the 

Department notes the suggested 

corresponding change to Representation 

64 of the Summary. 

3. Kaleidoscope Fund Update. Section 

IV(h) of the proposed exemption 

provides that the term ‘‘Kaleidoscope’’ 

means ‘‘Kaleidoscope Fund LLC, a 

Delaware limited liability company 

established by Renaissance to facilitate 

the investment by certain employees of 

Renaissance in the other Proprietary 

Funds.’’ The Applicant’s comment 

suggested that the definition of 

‘‘Kaleidoscope’’ in Section IV(h) should 

be revised as follows, to describe more 

accurately the name of the Fund and the 

eligible employees for whom such Fund 

is established: 

The term ‘‘Kaleidoscope’’ means 

Renaissance Kaleidoscope Fund LLC, a 

Delaware limited liability company 

established by Renaissance to facilitate the 

investment by employees of Renaissance who 

are not Accredited Investors under the 

Securities Act of 1933, as amended (the 1933 

Act) or otherwise do not meet the financial 

requirements in the other Proprietary Funds. 

In addition, the Applicant suggests a 

corresponding change to Representation 

14 in the Summary in order to conform 

the Summary to the foregoing 

modification made to Section IV(h) of 

the proposed exemption. 

The Department has modified the 

final exemption as described above to 

reflect the Applicant’s suggested 

revisions to Section IV(h) of the 

proposed exemption. In addition, the 

Department notes the suggested 

corresponding change to Representation 

14 of the Summary. 


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4. New Medallion Vehicles Update. 

Sections IV(j), (k), and (m) of the 

proposed exemption provide definitions 

of the terms ‘‘New Medallion Vehicle,’’ 

‘‘New Kaleidoscope,’’ and ‘‘New 

Medallion FF.’’ The Applicant’s 

comment suggests modifications to 

these definitions, in order to conform 

the definitions of the New Medallion 

Vehicles more closely to their respective 

offering documents, and to more fully 

describe their characteristics, including 

the eligible employees for whom such 

Funds are established. 

Moreover, the Applicant explains that 

the New Medallion Conduit (New 

Medallion FF RMPRF), defined in 

Section IV(l) of the proposed exemption, 

is designed to permit IRA Holders who 

do not meet the eligibility requirements 

of New Medallion FF to invest in the 

Medallion Master Funds, and thus will 

accept investment by IRA Holders in 

addition to investment by New 

Kaleidoscope. The Applicant explains 

that New Medallion FF RMPRF is 

organized under section 3(c)(1) of the 

1940 Act and has a 100 investor limit 

thereunder, and New Kaleidoscope will 

itself be an Accredited Investor for 

purposes of investing in New Medallion 

FF RMPRF. Therefore, the Applicant 

suggests that the definition of ‘‘New 

Medallion Conduit’’ in Section IV(l) of 

the proposed exemption be stricken and 

replaced with the definition of ‘‘New 

Medallion FF RMPRF,’’ which more 

accurately describes such Fund. 

Accordingly, the Applicant suggests 

that Sections IV(j), (k), (l), and (m) of 

should be revised, respectively, to read 

as follows: 

The term ‘‘New Medallion Vehicle’’ or 

‘‘New Medallion Vehicles’’ means, 

individually or collectively, New Medallion 

FF, New Medallion FF RMPRF, and New 

Kaleidoscope. 

The term ‘‘New Kaleidoscope’’ means 

Renaissance Kaleidoscope RF Fund LLC, the 

Delaware limited liability company 

established by Renaissance in order to 

facilitate an investment by IRA Holders who 

are not ‘‘Accredited Investors’’ under the 

1933 Act in New Medallion FF RMPRF and 

New RIEF/RIFF, through their IRAs. 

The term ‘‘New Medallion FF’’ means 

Medallion Fund RF LP, the Bermuda Limited 

Partnership that is treated as a corporation 

for US Federal Income Tax purposes, 

established by Renaissance in order to 

facilitate an investment by an IRA Holder 

who is a ‘‘Qualified Purchaser’’ or 

‘‘Knowledgeable Employee’’ under the 

Investment Company Act of 1940, as 

amended (the 1940 Act) in the Medallion 

Master Funds, through his or her IRA. 

The term ‘‘New Medallion FF RMPRF’’ 

means Medallion RMPRF Fund LP, the 

Bermuda Limited Partnership that is treated 

as a corporation for US Federal Income Tax 

purposes established by Renaissance in order 

to facilitate the investment by IRA Holders 

who are neither Qualified Purchasers nor 

‘‘Knowledgeable Employees’’ as defined in 

the 1940 Act, but who are Accredited 

Investors, in the Medallion Master Funds, 

through their IRAs. 

In addition, in order to more fully 

describe New Kaleidoscope, and to 

provide additional context for its 

investments, the Applicant in its 

comment letter suggests the addition of 

a definition for ‘‘New RIEF/RIFF.’’ 

Accordingly, the Applicant suggests that 

new Section IV(n) be added to the 

proposed exemption as follows: 

The term ‘‘New RIEF/RIFF’’ means a newly 

organized series of RIEF RMP LLC and a 

newly created Bermuda limited partnership 

to be known as RIFF RF Fund LP, 

respectively, each of which has been 

established to facilitate investments of IRAs 

in RIEF RMP LLC and RIFF RMP LLC. 

Finally, the Applicant suggests that 

Sections IV(n)–(q) of the proposed 

exemption should be re-designated in 

the final exemption as Sections IV(o)– 

(r), to accommodate the addition of the 

definition of ‘‘New RIEF/RIFF.’’ 

The Department has modified 

Sections IV(j), (k), (l), and (m), and 

added new Section IV(n) in the final 

exemption, as described above, to reflect 

the Applicant’s suggested revisions. 

Furthermore, Sections IV(n)–(q) of the 

proposed exemption have been redesignated in the final exemption as 

Sections IV(o)–(r). 

5. Participant Update. Section IV(n) of 

the proposed exemption defines the 

term ‘‘Participant,’’ as ‘‘a former 

participant in the Renaissance 

Technologies, LLC 401(k) Plan (the 

401(k) Plan) who received a distribution 

of their entire account balance in the 

401(k) Plan prior to December 31, 2010 

as a result of the termination of such 

plan, and is either an employee or a 

Permitted Owner of Renaissance at the 

time of such individual’s investment in 

the New Medallion Vehicles.’’ However, 

the Applicant’s comment requested that 

the definition of ‘‘Participant’’ be 

expanded to cover all employees of 

Renaissance, not just those who 

received Proceeds prior to December 31, 

2010. 

The Applicant explains that, since the 

termination of the 401(k) Plan, several 

new employees who were not 

participants in that plan have joined 

(and left) Renaissance, through the 

normal process of employee turnover. 

As a result, according to the Applicant, 

the definition of ‘‘Participant’’ provided 

in the proposed exemption would cause 

Renaissance to have ‘‘two classes’’ of 

employees—those who have the 

opportunity to make IRA investments in 

New Vehicles and those who do not, a 

result that the Applicant desires to 

avoid. The Applicant represents that it 

does not foresee any substantive 

changes in the size or educational 

characteristics of its employee group, as 

a result of the normal employee 

turnover process. 

Accordingly, the Applicant requested 

that the definition of Participant be 

revised to read as follows: 

The term ‘‘Participant’’ means a person 

who is either an employee or a Permitted 

Owner of Renaissance at the time of such 

individual’s investment in the New 

Medallion Vehicles. 

The Department has modified the 

final exemption as described above in 

order to reflect the Applicant’s 

suggested revisions to Section IV(n) of 

the proposed exemption and has relettered Section IV(n) as Section IV(o). 

6. Permitted Owners Update. Section 

IV(o) of the proposed exemption defines 

the term ‘‘Permitted Owner’’ to mean 

‘‘the seven individuals permitted to 

invest in the Medallion Funds following 

the termination of their Renaissance 

employment, comprised of three 

Renaissance ‘‘founders,’’ and four 

former employees who are owners of 

Renaissance.’’ The Applicant’s comment 

explained that, although Renaissance 

had previously indicated that there are 

seven persons constituting ‘‘Permitted 

Owners,’’ in reality there are eight such 

individuals. Therefore, the Applicant’s 

comment suggested that the definition 

of ‘‘Permitted Owner’’ be revised to read 

as follows: 

The term ‘‘Permitted Owners’’ means the 

eight individuals permitted to invest in the 

Medallion Funds following the termination 

of their Renaissance employment, comprised 

of three Renaissance ‘‘founders’’ each of 

whom is a current owner of Renaissance and 

one of whom is a current employee, and five 

former employees who are current owners of 

Renaissance. 

In addition, the Applicant suggests an 

additional, corresponding change to 

Footnote 41 in the Summary, in order to 

conform the Summary to the foregoing 

modification made to Section IV(o) of 

the proposed exemption. 

The Department has modified the 

final exemption as described above to 

reflect the Applicant’s suggested 

revisions to Section IV(o) of the 

proposed exemption and has re-lettered 

Section IV(o) as Section IV(p). In 

addition, the Department notes the 

Applicant’s suggested corresponding 

revision to Footnote 41 in the Summary. 

7. Renaissance Valuation Committee 

Update. Section IV(p) of the proposed 

exemption provides that the term 

‘‘Renaissance Valuation Committee,’’ or 

‘‘RVC’’ means ‘‘the committee, 


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established by Renaissance in 2008, that 

oversees and monitors the valuation 

process, and establishes the methods of, 

and procedures for, valuing various 

instruments traded by Renaissance (e.g., 

the Proprietary Funds), composed of 

high-level Renaissance employees who 

also are Fund investors.’’ The 

Applicant’s comment suggested certain 

modifications to Section IV(p) in order 

to more accurately describe the RVC. 

In this regard, the Applicant requests 

that the parenthetical ‘‘(e.g., the 

Proprietary Funds)’’ be deleted, because, 

as the Applicant explains, a Proprietary 

Fund is not an instrument that is traded 

by Renaissance. Furthermore, the 

Applicant suggests that the word ‘‘are’’ 

before ‘‘Fund investors’’ at the end of 

the definition should be changed to 

‘‘may be,’’ because, as the Applicant 

explains, classification as a Fund 

investor is not a requirement for 

membership in the RVC. Thus, Section 

IV(p) would read as follows: 

The term ‘‘Renaissance Valuation 

Committee,’’ or ‘‘RVC,’’ means the 

committee, established by Renaissance in 

2008, that oversees and monitors the 

valuation process, and establishes the 

methods of, and procedures for, valuing 

various instruments traded by Renaissance, 

composed of high-level Renaissance 

employees who also may be Fund investors. 

The Department has modified Section 

IV(p) of the proposed exemption to read 

as described above, to reflect the 

Applicant’s suggested revision. 

Furthermore, Section IV(p) has been redesignated as Section IV(q) in the final 

exemption. 

C. Clarifications and/or Corrections of 

Representations Made in the Summary 

The Applicant’s requested 

modifications to the Summary generally 

relate to: (1) The description of 

Renaissance and the Funds; (2) the 

description of the Medallion Funds 

master/feeder structure; (3) 

Renaissance’s ownership and 

investment structure; (4) the timing of 

the termination of the 401(k) Plan; (5) 

the avoidance of a performance 

guarantee implication; (6) the suggested 

modifications to Sections III and IV of 

the proposed exemption, relating to the 

descriptions of the New Medallion 

Vehicles and investors’ qualifications 

required to invest therein; and (7) the 

lack of investment advice or 

employment-related incentives 

concerning an IRA Holder’s investment 

in the New Medallion Vehicles. 

1. Description of Renaissance and the 

Funds. The Applicant notes that the 

paragraph captioned SUMMARY that is 

found on page 3038 of the proposed 

exemption contains an erroneous 

description of the Applicant. In this 

regard, the Applicant explains that it is 

incorrectly referred to as ‘‘Renaissance 

Technologies, Inc.’’ rather than as 

‘‘Renaissance Technologies LLC.’’ The 

Department notes this correction to the 

SUMMARY. 

2. Medallion Funds Structure. 

Representation 17 of the Summary 

explains that, ‘‘Renaissance is the 

general partner of the Medallion FFs 

and Medallion Master Funds that are 

organized as limited partnerships, and 

certain of Renaissance’s owners serve as 

directors of the Medallion FFs and 

Medallion Master Funds that are 

organized as non-U.S. corporations.’’ 

The Applicant notes in its comment 

letter that some of the Medallion FFs 

and Medallion Master Funds are 

organized as limited liability 

companies. Accordingly, the Applicant 

suggests that the first sentence of 

Representation 17 of the Summary 

should read as follows: 

Renaissance is the general partner or 

managing member of the Medallion FFs and 

Medallion Master Funds that are organized as 

limited partnerships or limited liability 

companies, respectively, and certain of 

Renaissance’s owners serve as directors of 

the Medallion FFs and Medallion Master 

Funds that are organized as non-U.S. 

corporations. 

The Department takes note of the 

Applicant’s requested clarification of 

Representation 17. 

3. Renaissance’s Ownership and 

Investment Structure. In Representation 

19 of the Summary, Footnote 9 states 

that ‘‘Renaissance directly owns 28.41% 

of the combined Medallion FFs, but 

Kaleidoscope, which invests directly in 

the Medallion FFs, is owned 

approximately 94.6% by Renaissance 

and 5.4% by its owners, directors, and 

employees.’’ The Applicant notes that 

Kaleidoscope invests directly in only 

one of the Medallion FFs, and suggests 

that, for the sake of accuracy, Footnote 

9 of the Summary be modified, 

accordingly. The Department takes note 

of the Applicant’s requested 

clarification of Footnote 9. 

4. Timing of 401(k) Plan Termination. 

In Representation 30 of the Summary, 

describing the Applicant’s termination 

of the 401(k) Plan, the Applicant notes 

that Renaissance terminated the 401(k) 

Plan in October 2010, so that 

Participants could receive distributions 

of their Proceeds prior to the end of that 

year. However, in its comment letter, 

the Applicant notes that the 401(k) Plan 

was actually terminated in December 

2010, not October 2010. The Department 

takes note of the Applicant’s requested 

clarification. 

5. Performance Guarantee 

Implication. In Representation 26 of the 

Summary, Footnote 13 reads, ‘‘[a]s the 

New Medallion Vehicles will not charge 

fees or profit participations in the form 

of performance allocations, Renaissance 

anticipates that their returns to IRA 

investors will exceed the historical net 

returns of the existing Proprietary 

Funds.’’ The Applicant, in its comment 

letter, suggests that, in order to avoid 

any implication of a performance 

guarantee, Footnote 13 should be 

modified to read as follows: 

As the New Medallion Vehicles will not 

charge management fees or profit 

participations in the form of performance 

allocations, Renaissance expects the returns 

to IRA investors in the New Medallion 

Vehicles will exceed the returns of the 

parallel Proprietary Funds for the same 

periods in which they invest and trade on a 

going forward basis. 

The Department takes note of the 

Applicant’s requested modification of 

Footnote 13. 

6. New Medallion Vehicles’ 

Descriptions/Investors’ Qualifications. 

Representations 33 through 41 of the 

Summary describe in detail the New 

Medallion Vehicles and the IRA 

Holders’ qualifications required to 

invest in such Funds. The Applicant, in 

its comment letter, suggests that such 

Representations and their 

accompanying footnotes should be 

modified to reflect the corresponding 

revisions to the definitions of the New 

Medallion Vehicles, as well as the 

existence of an additional Permitted 

Owner, as were requested in the 

comment letter. Furthermore, the 

Applicant suggests modifications to the 

descriptions of the New Medallion 

Vehicles and New RIEF/RIFF where 

they are discussed in Footnotes 26 and 

30, in Representations 58 and 59, and in 

Representations 63 through 65, 

corresponding to the requested revisions 

of such terms’ definitions in Section IV 

of the proposed exemption. The 

Department takes note of the 

Applicant’s requested clarifications of 

Representations 33 through 41, 58, 59, 

and 63 through 65, and of Footnotes 26 

and 30. 

7. Lack of Investment Advice/ 

Employment-Related Incentives/Funds 

References. In Representation 54 of the 

Summary, the Applicant represents that 

‘‘it has not provided, nor will it at any 

time provide, investment advice 

concerning an IRA Holder’s investment 

of their IRA in the New Medallion 

Vehicles or offer any financial or 

employment-related incentives to invest 

in the Funds.’’ Furthermore, the 

Applicant notes that ‘‘there have been 

no official communications with 


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6For purposes of this exemption, references to 

the provisions of Title I of the Act, unless otherwise 

specified, refer also to the corresponding provisions 

of the Code. 

7Pursuant to 29 CFR 2510.3–2(d), the Spouses’ 

IRAs are not within the jurisdiction of Title I of the 

Act. However, there is jurisdiction under Title II of 

the Act pursuant to section 4975 of the Code. 

Participants regarding the opportunity 

to invest in the Funds through IRAs 

since the termination of the 401(k) 

Plan * * *.’’ 

In its comment letter, the Applicant 

also states that it would be appropriate 

for the Department to clarify that the 

two references to ‘‘Funds’’ in the 

Representation above should more 

appropriately refer to the ‘‘New 

Medallion Vehicles.’’ The Applicant 

explains that, in Section IV(d) of the 

proposed exemption, ‘‘Funds’’ is 

defined to include a total of fifteen 

existing collective investment vehicles 

managed by Renaissance, comprised of 

both Proprietary and non-Proprietary 

funds. Furthermore, in Section IV(i) of 

the proposed exemption, the term 

‘‘Medallion Funds’’ is defined to 

include a subset of the Funds, 

specifically, the Medallion FFs and 

Medallion Master Funds. The Applicant 

notes that the proposed exemption only 

addresses investments by IRA Holders 

in Medallion Funds, as that is where the 

prohibited transaction occurs. 

Therefore, according to the Applicant, it 

is appropriate to limit the statement in 

Representation 54 to the New Medallion 

Vehicles, so that it is consistent with the 

scope of the relief granted. The 

Department takes note of the 

Applicant’s requested clarifications of 

Representation 54. 

After giving full consideration to the 

entire record, including the Applicant’s 

written comment, the Department has 

decided to grant the exemption, subject 

to the terms and conditions, as 

described above. For further information 

regarding the individual exemption, 

interested persons are encouraged to 

obtain copies of the exemption 

application file (Application No. D– 

11655) that the Department maintains 

with respect to the individual 

exemption. The complete application 

file, as well as supplemental 

submissions received by the 

Department, is made available for public 

inspection in the Public Documents 

Room of the Employee Benefits Security 

Administration, Room N–1513, U.S. 

Department of Labor, 200 Constitution 

Ave. NW., Washington, DC 20210. 

For a more complete statement of the 

facts and representations supporting the 

Department’s decision to grant this 

exemption refer to the proposed 

exemption published in the Federal 

Register on January 20, 2012 at 77 FR 

3038. 

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 ERISA does not relieve a 

fiduciary or other party in interest from 

certain other provisions of ERISA, 

including any prohibited transaction 

provisions to which the exemption does 

not apply and the general fiduciary 

responsibility provisions of section 404 

of ERISA, 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 ERISA; 

(2) In accordance with section 408(a) 

of ERISA and/or section 4975(c)(2) of 

the Code, the Department makes the 

following determinations: 

(a) The exemption is administratively 

feasible; 

(b) The exemption is in the interests 

of a Participant’s or Spouse’s IRA; and 

(c) The exemption is protective of the 

rights of a Participant’s or Spouse’s IRA; 

(3) The exemption is supplemental to, 

and not in derogation of, any other 

provisions of ERISA, 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 availability of this exemption 

is subject to the express condition that 

the material facts and representations 

contained in the application accurately 

describe all material terms of the 

transaction which is the subject of the 

exemption. 

Accordingly, the following exemption 

is granted under the authority of section 

408(a) of ERISA and section 4975(c)(2) 

of the Code and in accordance with the 

procedures set forth in 29 CFR Part 

2570, Subpart B (55 FR 32836, 32847, 

August 10, 1990). 

Exemption 

Section I. Covered Transactions 

Involving IRAS Subject to Title I and 

Title II of ERISA 

The restrictions of section 

406(a)(1)(A) and (D) of the Act and the 

sanctions resulting from the application 

of section 4975 of the Code, by reason 

of section 4975(c)(1)(A) and (D) of the 

Code,6 shall not apply, effective January 

1, 2012, to: 

(a) The direct or indirect acquisition 

by a Participant’s IRA of an interest in 

a Medallion Fund through such IRA’s 

acquisition of an interest in a New 

Medallion Vehicle; 

(b) The acquisition of an additional 

interest by a Participant’s IRA in a New 

Medallion Vehicle; and 

(c) The redemption of all or a portion 

of a Participant’s IRA’s interest in a New 

Medallion Vehicle. 

This exemption is subject to the 

general conditions set forth below in 

Section III. 

Section II. Covered Transactions 

Involving IRAs Subject to Title II of 

ERISA Only 

The sanctions resulting from the 

application of section 4975 of the Code, 

by reason of section 4975(c)(1)(A) and 

(D) of the Code, shall not apply, 

effective January 1, 2012, to: 7

(a) The direct or indirect acquisition 

by a Spouse’s IRA of an interest in a 

Medallion Fund through such IRA’s 

acquisition of an interest in a New 

Medallion Vehicle; 

(b) The acquisition of an additional 

interest by a Spouse’s IRA in a New 

Medallion Vehicle; and 

(c) The redemption of all or a portion 

of a Spouse’s IRA’s interest in a New 

Medallion Vehicle. 

This exemption is subject to the 

general conditions set forth below in 

Section III. 

Section III. General Conditions 

(a) An IRA’s acquisition of an interest 

in a New Medallion Vehicle is made at 

the specific direction of an IRA Holder. 

(b) Renaissance renders no investment 

advice (within the meaning of 29 CFR 

2510.3–21(c)) to IRA Holders 

concerning a potential acquisition of an 

interest in a New Medallion Vehicle and 

does not engage in marketing activities 

or offer employment-related incentives 

of any kind intended to cause IRA 

Holders to consider such acquisition. 

(c) An interest in a New Medallion 

Vehicle is only available to IRA Holders 

who satisfy the securities law and other 

regulatory-based investor qualifications 

applicable to all investors in such New 

Medallion Vehicle. 

(d) No commissions, sales charges, or 

other fees or profit participations in the 

form of performance allocations or 

otherwise, direct or indirect, are 

assessed against an IRA in connection 

with its acquisition and holding of an 

interest in a New Medallion Vehicle. 

(e) An IRA pays no more and receives 

no less for its particular interest in any 

of the New Medallion Vehicles than 


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they would in an arm’s length 

transaction with an unrelated party. 

(f) An IRA’s interest in a New 

Medallion Vehicle is redeemable, in 

whole or in part, without the payment 

of any redemption fee or penalty, no 

less frequently than on a quarterly basis 

upon no less than 10 days advance 

written notice, except in the case of 

New Kaleidoscope, for which 45 days’ 

notice is required. 

(g) An acquisition or redemption of an 

IRA’s interest in a New Medallion 

Vehicle is made for fair market value, 

determined as follows: 

(1) Equity securities are valued at 

their last reported sale price or official 

closing price on the market on which 

such securities primarily trade using 

sources independent of Renaissance and 

the issuer. If no sale of such equity 

security was reported on that date, the 

market value will be the last reported 

sale price on the most recent date for 

which a price is available, and will 

reflect a discount if such date occurred 

more than 30 days before. 

(2) Fixed income securities are valued 

at the ‘‘bid’’ price of such securities at 

the close of business on the relevant 

valuation date. These prices are 

determined (i) where available, on the 

basis of prices provided by independent 

pricing services that determine 

valuations based on market transactions 

for comparable securities; and (ii) if 

independent pricing services are not 

available, on the basis of quotes 

obtained from multiple independent 

providers that are either U.S.-registered 

or foreign broker-dealers, which are 

registered and subject to the laws of 

their respective jurisdiction, or banks. 

(3) Options are valued at the mean 

between the current independent ‘‘bid’’ 

price and the current independent 

‘‘asked’’ price or, where such prices are 

not available, are valued at their fair 

value in accordance with Fair Value 

Pricing Practices by the Renaissance 

Valuation Committee, which utilizes a 

set of defined rules and an independent 

review process. 

(4) If current market quotations are 

not readily available for any 

investments, such investments are 

valued at their fair value by the 

Renaissance Valuation Committee in 

accordance with Fair Value Pricing 

Practices. 

(h) Redemption of an IRA’s interest in 

a New Medallion Vehicle, in whole or 

in part, is made in cash. 

(i) In the event that a redemption of 

any portion of an interest in a New 

Medallion Vehicle held by an IRA 

becomes necessary as the result of a 

reduction of the Investment Allocation 

applicable to a Participant, then, at an 

IRA Holder’s election, a redemption 

may first be made of such IRA Holder’s 

taxable investments (if any) prior to his 

or her IRA’s interest in a New Medallion 

Vehicle. 

(j) With respect to the investment by 

Participants in the New Medallion 

Vehicles through IRAs, Renaissance 

acknowledges that such investments 

may constitute investments by a 

‘‘pension plan’’ within the meaning of 

section 3(2) of the Act, and the 

Applicant represents that, with respect 

to such investments, it will comply with 

all applicable requirements of Title I of 

the Act. 

(k) Renaissance does not use the fact 

of IRAs’ investments in the Funds for 

any marketing activities or publicity 

materials for the Funds. 

(l) In advance of the initial investment 

by an IRA in a New Medallion Vehicle, 

the IRA Holder receives: 

(1) A copy of the proposed exemption 

and the final exemption, following the 

publication of the final exemption in the 

Federal Register; 

(2) A private offering memorandum 

(with all related exhibits) describing the 

relevant investment vehicles, including 

its investment objectives, risks, 

conflicts, operating expenses and 

redemption and valuation policies, and 

any IRA Holder whose IRA owns an 

interest in a New Medallion Vehicle 

receives the same disclosures and 

information provided to other investors 

with respect to the Fund in which he or 

she invests; and 

(3) Following receipt of the 

information described in (1) and (2), 

above, an IRA Holder will receive all 

reasonably available relevant 

information as such IRA Holder may 

request. 

(m) On an on-going basis, Renaissance 

provides each IRA Holder whose IRA 

owns an interest in a New Medallion 

Vehicle with the following information: 

(1) Unaudited performance reports at 

the end of each month; and 

(2) Audited annual financial 

statements following the end of each 

calendar year. 

(n) Prior to the acquisition by an IRA 

of an interest in a New Medallion 

Vehicle or each Medallion Master Fund, 

other New Medallion Vehicle, or New 

RIEF/RIFF in which, or through which, 

a New Medallion Vehicle invests, 

Renaissance or the applicable New 

Medallion Vehicle manager (the New 

Medallion Vehicle Manager), with 

respect to any such acquisition by an 

IRA: 

(1) Agrees to submit to the 

jurisdiction of the federal and state 

courts located in the State of New York; 

(2) Agrees to appoint an agent for 

service of process for the New 

Medallion Vehicle, and any other Fund 

described in this section, in the United 

States (the Process Agent); 

(3) Consents to service of process on 

the Process Agent; and 

(4) Agrees that any enforcement by an 

IRA Holder of his or her rights pursuant 

to this exemption will, at the option of 

the IRA Holder, occur exclusively in the 

United States courts. 

(o) Renaissance maintains or causes to 

be maintained for a period of six years 

from the date of any covered transaction 

such records as are necessary to enable 

the persons described in paragraph 

(p)(1) below to determine whether the 

conditions of this proposed exemption, 

if granted, have been met, provided that 

(1) a separate prohibited transaction will 

not be considered to have occurred if, 

due to circumstances beyond the control 

of Renaissance, the records are lost or 

destroyed prior to the end of the sixyear period, and (2) no party in interest 

or disqualified person other than 

Renaissance shall be subject to a civil 

penalty under section 502(i) of the Act 

or the taxes imposed by section 4975(a) 

and (b) of the Code, if such records are 

not maintained, or are not available for 

examination as required by paragraph 

(p)(1) below; and 

(p)(1) Except as provided below in 

paragraph (p)(2), and notwithstanding 

any provisions of subsections (a)(2) and 

(b) of section 504 of the Act, the records 

referred to above in paragraph (o) are 

unconditionally available at their 

customary location for examination 

during normal business hours by: 

(A) Any duly authorized employee or 

representative of the Department, the 

Internal Revenue Service, the 

Commodity Futures Trading 

Commission (CFTC), or the U.S. 

Securities and Exchange Commission 

(SEC), and 

(B) Any IRA Holder or any duly 

authorized representative or beneficiary 

of an IRA; and 

(2) None of the persons described 

above in paragraph (p)(1)(B) shall be 

authorized to examine trade secrets of 

Renaissance, or commercial or financial 

information which is privileged or 

confidential, and should Renaissance 

refuse to disclose information on the 

basis that such information is exempt 

from disclosure, Renaissance shall, by 

the close of the thirtieth (30th) day 

following the request, provide a written 

notice advising that person of the 

reasons for the refusal and that the 

Department may request such 

information. 


tkelley on DSK3SPTVN1PROD with NOTICES
23764 Federal Register / Vol. 77, No. 77 / Friday, April 20, 2012 / Notices 

Section IV. Definitions 

For purposes of this exemption: 

(a) The term ‘‘Renaissance’’ means 

Renaissance Technologies, LLC, and its 

affiliates. 

(b) An ‘‘affiliate’’ of a person 

includes— 

(1) Any person directly or indirectly 

through one or more intermediaries, 

controlling, controlled by, or under 

common control with such entity (for 

purposes of this paragraph, the term 

‘‘control’’ means the power to exercise 

a controlling influence over the 

management or policies of a person 

other than an individual); and 

(2) Any officer of, director of, or 

partner in such person. 

(c) The term ‘‘Fair Value Pricing 

Policies’’ means the Official Pricing 

Policy established in good faith by the 

Renaissance Valuation Committee for 

valuing an instrument, which is subject 

to the approval of the Renaissance 

Technologies LLC Board of Directors. 

(d) The term ‘‘Fund’’ or ‘‘Funds’’ 

means, individually or collectively, the 

nine privately offered U.S. and non-U.S. 

collective investment vehicles managed 

by Renaissance, comprised almost 

exclusively of assets of Renaissance and 

its owners and employees (the 

Proprietary Funds) and the six privately 

offered U.S. and non-U.S. collective 

investment vehicles, consisting 

primarily of assets of clients of 

Renaissance (the non-Proprietary 

Funds). 

(e) The term ‘‘Investment Allocation’’ 

means the permitted investment 

allocation limit in the Medallion Funds 

applicable to a Renaissance employee, 

which such employee and his or her 

Spouse may utilize to make investments 

in a Medallion FF or Kaleidoscope, or 

in an applicable New Medallion 

Vehicle. 

(f) The term ‘‘IRA’’ means an 

‘‘individual retirement account’’ as 

defined under section 408(a) of the Code 

or a ‘‘Roth IRA’’ as defined under 

section 408A of the Code that is 

beneficially owned by an IRA Holder. 

(g) The term ‘‘IRA Holder’’ means a 

Participant, or the Spouse of a 

Participant, who is eligible to invest in 

a New Medallion Vehicle through his or 

her IRA. 

(h) The term ‘‘Kaleidoscope’’ means 

Renaissance Kaleidoscope Fund LLC, a 

Delaware limited liability company 

established by Renaissance to facilitate 

the investment by employees of 

Renaissance who are not Accredited 

Investors under the Securities Act of 

1933, as amended (the 1933 Act) or 

otherwise do not meet the financial 

requirements to invest in the other 

Proprietary Funds. 

(i) The term ‘‘Medallion Funds’’ 

means six of the nine Proprietary Funds, 

organized in a ‘‘master-feeder’’ 

investment structure, comprised of six 

Medallion Fund feeder funds 

(Medallion FFs) engaging in their 

investment and trading activities only 

through certain master funds and their 

subsidiaries (the Medallion Master 

Funds). 

(j) The term ‘‘New Medallion Vehicle’’ 

or ‘‘New Medallion Vehicles’’ means, 

individually or collectively, New 

Medallion FF, New Medallion FF 

RMPRF, and New Kaleidoscope. 

(k) The term ‘‘New Kaleidoscope’’ 

means Renaissance Kaleidoscope RF 

Fund LLC, the Delaware limited liability 

company established by Renaissance in 

order to facilitate an investment by IRA 

Holders who are not ‘‘Accredited 

Investors’’ under the 1933 Act in New 

Medallion FF RMPRF and New RIEF/ 

RIFF, through their IRAs. 

(l) The term ‘‘New Medallion FF’’ 

means Medallion Fund RF LP, the 

Bermuda Limited Partnership that is 

treated as a corporation for US Federal 

Income Tax purposes, established by 

Renaissance in order to facilitate an 

investment by an IRA Holder who is a 

‘‘Qualified Purchaser’’ or 

‘‘Knowledgeable Employee’’ under the 

Investment Company Act of 1940, as 

amended (the 1940 Act) in the 

Medallion Master Funds, through his or 

her IRA. 

(m) The term ‘‘New Medallion FF 

RMPRF’’ means Medallion RMPRF 

Fund LP, the Bermuda Limited 

Partnership that is treated as a 

corporation for US Federal Income Tax 

purposes established by Renaissance in 

order to facilitate the investment by IRA 

Holders who are neither Qualified 

Purchasers nor ‘‘Knowledgeable 

Employees’’ as defined in the 1940 Act, 

but who are Accredited Investors, in the 

Medallion Master Funds, through their 

IRAs. 

(n) The term ‘‘New RIEF/RIFF’’ means 

a newly organized series of RIEF RMP 

LLC and a newly created Bermuda 

limited partnership to be known as RIFF 

RF FUND LP, each of which has been 

established to facilitate investments of 

IRAs in RIEF RMP LLC and RIFF RMP 

LLC. 

(o) The term ‘‘Participant’’ means a 

person who is either an employee or a 

Permitted Owner of Renaissance at the 

time of such individual’s investment in 

the New Medallion Vehicles. 

(p) The term ‘‘Permitted Owners’’ 

means the eight individuals permitted 

to invest in the Medallion Funds 

following the termination of their 

Renaissance employment, comprised of 

three Renaissance ‘‘founders,’’ and five 

former employees who are current 

owners of Renaissance. 

(q) The term ‘‘Renaissance Valuation 

Committee,’’ or ‘‘RVC,’’ means the 

committee, established by Renaissance 

in 2008, that oversees and monitors the 

valuation process, and establishes the 

methods of, and procedures for, valuing 

various instruments traded by 

Renaissance, composed of high-level 

Renaissance employees who also may 

be Fund investors. 

(r) The term ‘‘Spouse’’ means a person 

who is (1) married to a Participant, or 

(2) to the extent not prohibited by 

applicable law, in a civil union or 

similar marriage-equivalent institution 

established pursuant to State law of the 

State where the Participant resides (or 

otherwise recognized by the State where 

the Participant resides) with a 

Participant. 

Section IV. Effective Date 

This exemption is effective as of 

January 1, 2012. 

Signed at Washington, DC, this 13th day of 

April 2012. 

Lyssa Hall, 

Acting Director of Exemption Determinations, 

Employee Benefits Security Administration, 

U.S. Department of Labor. 

[FR Doc. 2012–9496 Filed 4–19–12; 8:45 am] 

BILLING CODE 4510–29–P 

DEPARTMENT OF LABOR 

Employment and Training 

Administration 

Comment Request for Information 

Collection for Site Visit Data 

Collection; American Recovery and 

Reinvestment Act (ARRA)-Funded 

Grants; Job Training Evaluations; 

Extension Without Revisions 

AGENCY: Employment and Training 

Administration (ETA), Labor. 

ACTION: Notice. 

SUMMARY: The Department of Labor 

(Department), as part of its continuing 

effort to reduce paperwork and 

respondent burden, conducts a 

preclearance consultation program to 

provide the public and Federal agencies 

with an opportunity to comment on 

proposed and/or continuing collections 

of information in accordance with the 

Paperwork Reduction Act of 1995 (PRA) 

[44 U.S.C. 3506(c)(2)(A)]. This program 

helps 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. 


tkelley on DSK3SPTVN1PROD with NOTICES