Federal Register / Vol. 79, No. 170 / Wednesday, September 3, 2014 / Notices 52365 

1The Summary of Facts and Representations is 

based on the Applicant’s representations and does 

not reflect the views of the Department, unless 

indicated otherwise. 

included in the record of the meeting 

and will be available by contacting the 

EBSA Public Disclosure Room. 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. 

Individuals or representatives of 

organizations wishing to address the 

Advisory Council should forward their 

requests to the Executive Secretary or 

telephone (202) 693–8668. Oral 

presentations will be limited to ten 

minutes, time permitting, but an 

extended statement may be submitted 

for the record. Individuals with 

disabilities who need special 

accommodations should contact the 

Executive Secretary by September 22, 

2014 at the address indicated. 

Signed at Washington, DC, this 27th day of 

August 2014. 

Phyllis C. Borzi, 

Assistant Secretary, Employee Benefits 

Security Administration. 

[FR Doc. 2014–20891 Filed 9–2–14; 8:45 am] 

BILLING CODE 4510–29–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

[Application No. D–11819] 

Notice of Proposed Exemption 

involving Credit Suisse AG 

(hereinafter, either Credit Suisse AG or 

the Applicant) 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 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 proposed 

exemption, if granted, would affect the 

ability of certain entities with specified 

relationships to Credit Suisse AG to 

continue to rely upon the relief 

provided by Prohibited Transaction 

Class Exemption 84–14. 

DATES: Effective Date: If granted, this 

proposed exemption will be effective as 

of 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 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 35 days from the 

date of publication of this Federal 

Register Notice. 

ADDRESSES: Comments and requests for 

a hearing should state: (1) The name, 

address, and telephone number of the 

person making the comment or 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 request for a hearing must 

also state the issues to be addressed and 

include a general description of the 

evidence to be presented at the hearing. 

All written comments and requests for 

a public hearing concerning the 

proposed exemption should be sent 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–11819. 

Interested persons are also invited to 

submit comments and/or hearing 

requests to EBSA via email or FAX. Any 

such comments or requests should be 

sent either by email to: 

moffitt.betty@dol.gov, or by FAX to 

(202) 219–0204 by the end of the 

scheduled comment period. The 

application for exemption and the 

comments received 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 and 

hearing requests will also be available 

online at www.regulations.gov and 

www.dol.gov/ebsa, at no charge. 

Warning: If you submit written 

comments or hearing requests, 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 

comments and hearing requests may be 

posted on the Internet and can be 

retrieved by most Internet search 

engines. 

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 the 

proposed exemption in this document is 

granted, any entity with a specified 

relationship to Credit Suisse AG will 

not be precluded from relying on the 

relief provided by Prohibited 

Transaction Class Exemption 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)), notwithstanding 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, to be 

entered in the District Court for the 

Eastern District of Virginia in Case 

Number 1:14–cr–188–RBS. The 

proposed exemption has been requested 

by Credit Suisse AG 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, 66644, 

October 27, 2011). 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. 

Accordingly, this notice of proposed 

exemption is being issued solely by the 

Department. 

Summary of Facts and 

Representations 1

Background 

1. The Applicant represents that 

Credit Suisse Group AG (Credit Suisse 

Group) is a publicly-traded company 

organized in Switzerland and 

headquartered in Zurich. As of 

December 31, 2013, Credit Suisse Group 

had assets of approximately $980.1 

billion, including approximately $47.3 

billion in shareholders’ equity. Credit 

Suisse Group owns a 100% interest in 

Credit Suisse AG (i.e., the Applicant), 

which operates as a bank, with all 

related banking, finance, consultancy, 

service, and trading activities in 

Switzerland and abroad. 

2. The Applicant further represents 

that it has financial relationships with a 

wide range of entities that may act as 

‘‘qualified professional asset managers’’ 

(QPAMs), in reliance on the exemptive 

relief provided in Prohibited 

mstockstill on DSK4VPTVN1PROD with NOTICES

52366 Federal Register / Vol. 79, No. 170 / Wednesday, September 3, 2014 / Notices 

2 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). 

3See 47 FR 56945, 56947 (December 21, 1982). 

4United States of America v. Credit Suisse AG, 

Case Number 1:14–cr–188–RBS. 

5Section 7206(2) of the Code prohibits willfully 

aiding, assisting, procuring, counseling, or advising 

the preparation or presentation of false income tax 

returns. Section 371 of Title 18 of the United States 

Code generally prohibits two or more persons from 

conspiring either to commit any offense against the 

United States or to defraud the United States. 

6An ‘‘undeclared account’’ is a financial account 

owned by an individual subject to U.S. tax and 

maintained in a foreign country that has not been 

reported by the individual account owner to the 

U.S. government on an income tax return and a 

Report of Foreign Bank and Financial Accounts 

(FBAR). U.S. citizens, resident aliens, and legal 

permanent residents have an obligation to report all 

income earned from foreign bank accounts on their 

tax returns and to pay the taxes due on that income. 

Transaction Class Exemption (PTE) 84– 

14.2

PTE 84–14 provides a conditional 

exemption for certain transactions 

between a party in interest with respect 

to an employee benefit plan and an 

investment fund (as defined in Section 

VI(b) of PTE 84–14) in which the plan 

has an interest, where the investment 

fund is managed by a QPAM. One of the 

conditions for exemptive relief in PTE 

84–14, Section I(g), precludes an entity 

that may otherwise meet the definition 

of a QPAM provided in Section VI(a) of 

PTE 84–14 from relying on the relief 

provided by the class exemption if that 

entity or an affiliate thereof or any 

owner, direct or indirect, of a 5 percent 

or more interest in the QPAM has, 

within 10 years immediately preceding 

the transaction, been either convicted or 

released from imprisonment, whichever 

is later, as a result of certain specified 

criminal activity described in that 

section. This condition was included in 

PTE 84–14, in part, based on the 

expectation that a QPAM, and those 

who may be in a position to influence 

its policies, maintain a high standard of 

integrity.3

3. The Applicant represents that it is 

an affiliate (as defined in Section VI(d) 

of PTE 84–14) of Credit Suisse Asset 

Management LLC, Credit Suisse 

Securities (USA) LLC, CSAM Limited, 

and a number of other entities that act 

as QPAMs and manage over $2 billion 

in assets (collectively, the Credit Suisse 

Affiliated QPAMs). The Applicant 

represents that it also owns a five 

percent or more interest in certain other 

entities (the Credit Suisse Related 

QPAMs) that may provide investment 

management services to plans in 

reliance on the exemptive relief 

provided in PTE 84–14, but are not 

affiliates (as defined in Section VI(d) of 

PTE 84–14) of Credit Suisse AG. As 

noted above in paragraph two, Section 

I(g) of PTE 84–14 would also preclude 

the Credit Suisse Related QPAMs from 

relying on the relief provided by PTE 

84–14, notwithstanding the fact that 

they are not affiliated with Credit Suisse 

AG. 

4. The Applicant notes that, on May 

19, 2014, the Tax Division of the United 

States Department of Justice and the 

U.S. Attorney’s Office for the Eastern 

District of Virginia filed a one-count 

criminal information (the Information) 

in the District Court for the Eastern 

District of Virginia (the District Court) 4

charging Credit Suisse AG with a 

conspiracy to violate section 7206(2) of 

the Code in violation of Title 18, United 

States Code, Section 371.5 The 

Information identifies the Applicant and 

its subsidiaries, Credit Suisse Fides and 

Clariden Leu Ltd., of willfully aiding, 

assisting in, procuring, counseling, and 

advising the preparation and 

presentation of false income tax returns 

and other documents to the Internal 

Revenue Service of the Treasury 

Department (IRS), for decades, prior to 

and through approximately 2009. 

5. According to the Statement of Facts 

filed in the criminal case (the Statement 

of Facts), for decades prior to and 

through approximately 2009, Credit 

Suisse AG operated an illegal crossborder banking business that knowingly 

and willfully aided and assisted 

thousands of U.S. clients in opening and 

maintaining undeclared accounts 6

concealing their offshore assets and 

income from the IRS. Private bankers 

employed by Credit Suisse AG (referred 

to as Relationship Managers or RMs) 

served as the primary contact for U.S. 

clients with undeclared accounts at 

Credit Suisse AG. Credit Suisse AG used 

a variety of means to assist U.S. clients 

in concealing their undeclared accounts, 

including by: Assisting clients in using 

sham entities as nominee beneficial 

owners of the undeclared accounts; 

soliciting IRS forms that falsely stated 

under penalty of perjury that the sham 

entities beneficially owned the assets in 

the accounts; failing to maintain in the 

United States records related to the 

accounts; destroying account records 

sent to the United States for client 

review; using Credit Suisse managers 

and employees as unregistered 

investment advisors on undeclared 

accounts; facilitating withdrawals of 

funds from undeclared accounts by 

either providing hand-delivered cash in 

the United States or using Credit 

Suisse’s correspondent bank accounts in 

the United States; structuring transfers 

of funds to evade currency transaction 

reporting requirements; and providing 

offshore credit and debit cards to 

repatriate funds in the undeclared 

accounts. 

6. According to the Statement of 

Facts, Credit Suisse AG made a number 

of ineffectual attempts to consolidate 

these U.S. clients’ accounts in Credit 

Suisse AG business entities that 

complied with U.S. law. For instance, 

starting in or about 2009, Credit Suisse 

AG engaged in a flawed process of 

verifying tax compliance of U.S. 

accounts in order to allow these 

accounts to remain at Credit Suisse AG. 

In December 2010, the Tax Division of 

the DOJ informed Credit Suisse AG that 

it had begun a criminal investigation of 

Credit Suisse AG that had uncovered 

evidence of tax law violations. Although 

Credit Suisse AG had either transferred 

or terminated the majority of its 

relationships with these U.S. clients by 

approximately 2010, Credit Suisse AG 

continued to identify U.S. customer 

accounts for closure until in or about 

2013. 

7. On May 19, 2014, pursuant to a 

plea agreement (the Plea Agreement), 

the Applicant entered a plea of guilty 

for assisting U.S. citizens in federal 

income tax evasion. The Applicant 

represents that it expects the District 

Court to enter a judgment of conviction 

(the Conviction) against Credit Suisse 

AG that will require remedies that are 

materially the same as set forth in the 

Plea Agreement. The Conviction is 

scheduled to be entered on or after 

November 1, 2014. 

Failure To Comply With Section I(g) of 

PTE 84–14 and Proposed Relief 

8. As noted above, Section I(g) of PTE 

84–14 expressly identifies a criminal 

conviction of a QPAM, an affiliate 

thereof, or any owner, direct or indirect, 

of a 5 percent or more interest in a 

QPAM, for income tax evasion as 

precluding the QPAM from relying on 

the relief set forth in the class 

exemption. Pursuant to that section, 

once the Conviction is entered, the 

Credit Suisse Affiliated QPAMs and 

Credit Suisse Related QPAMs will no 

longer be able to rely on PTE 84–14. The 

Applicant is seeking an individual 

exemption that would permit the Credit 

Suisse Affiliated QPAMs and the Credit 

Suisse Related QPAMs to continue to 

rely on PTE 84–14, notwithstanding the 

Conviction, to the extent that such 

QPAMs meet certain additional 

conditions, as proposed herein. 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 79, No. 170 / Wednesday, September 3, 2014 / Notices 52367 

Statutory Findings—In the Interest of 

Affected Plans and IRAs 

9. The Applicant submits that the 

requested exemption would be in the 

interest of affected plans, those 

described in section 3(3) of ERISA 

(ERISA-covered plans) or section 

4975(e)(1) of the Code (IRAs). In this 

regard, the Applicant states that the 

exemption would allow ERISA-covered 

plans and IRAs managed by the Credit 

Suisse Affiliated QPAMs and Credit 

Suisse Related QPAMs to avoid the 

costs or losses that would arise if these 

QPAMs were suddenly unable to rely on 

the relief afforded by PTE 84–14 after 

the Conviction. The Applicant submits 

that if the Credit Suisse Affiliated 

QPAMs lose the relief in PTE 84–14, 

three main investment strategies used 

for ERISA-covered plans and IRAs 

would be impacted. The first strategy, 

Credit, seeks to invest in long-term fixed 

income opportunities by investing in 

syndicated bank loans, high yield 

bonds, and structured asset backed 

securities that trade over-the-counter in 

the primary and secondary markets. 

This strategy covers five ERISA-covered 

plans and pooled funds. About half of 

the strategy involves loans engaged in 

by Credit Suisse Affiliated QPAMs in 

reliance of the relief provided by PTE 

84–14. The second strategy, 

Commodities, seeks to replicate the 

return of certain commodities indices by 

investing in futures, structured notes, 

total return swaps, and other 

derivatives. This strategy covers eight 

ERISA-covered plans and pooled funds. 

The third strategy, Liquid Alternative 

Beta (LAB), seeks to replicate the 

performance of hedge fund sectors such 

as long/short equity, event driven, and 

managed futures using liquid tradable 

instruments. The LAB strategy invests 

in ADRs, equity securities, ETFs, 

futures, forwards, and options. This 

strategy covers four ERISA-covered 

plans. 

10. The Applicant represents that the 

cost of terminating an investment is 

generally the difference between the bid 

price and the ask price for any 

particular investment. Furthermore, 

some investments are more liquid than 

others (e.g., Treasury bonds are more 

liquid than foreign sovereign bonds and 

equities are more liquid than swaps). 

According to the Applicant, the 

strategies mentioned above (Credit, 

Commodities, and LAB) tend to be less 

liquid than certain other strategies and, 

thus, the cost of terminating an 

investment therein would be 

significantly higher than, for example, 

liquidating a large cap equity portfolio. 

The Applicant estimates that the cost to 

ERISA-covered plans and IRAs of 

transitioning from Credit Suisse 

Affiliated QPAMs to other unrelated 

managers in each of the three strategies 

is as follows: LAB—about eleven basis 

points; Credit—under two basis points 

to liquidate the assets but because of the 

bid/ask spread, as much as fifty basis 

points to reinvest the assets; and 

Commodities—three to five basis points. 

Based on the amount of assets in each 

strategy, the Applicant estimates that 

the total cost of liquidating would be 

about $450,000. However, the Applicant 

notes that the affected ERISA-covered 

plans and IRAs would need to reinvest 

in the market, so the real cost would 

potentially be much higher. The 

Applicant additionally represents that 

the Credit Suisse Affiliated QPAMs do 

not impose any charges or penalties on 

ERISA-covered plans or IRAs for 

terminating or withdrawing from any 

agreements for the provision of asset 

management or other services by the 

Credit Suisse Affiliated QPAMs. 

11. The Applicant states further that 

the proposed exemption would enable 

ERISA-covered plans and IRAs managed 

by the Credit Suisse Affiliated QPAMs 

and Credit Suisse Related QPAMs to 

continue with the current investment 

strategies of their chosen QPAM. The 

Applicant suggests that any ERISAcovered plan or IRA that is forced to 

move to a new investment manager 

could incur transition costs, including 

costs associated with identifying an 

appropriate investment manager to act 

as a QPAM. 

Statutory Findings—Protective of 

Affected Plans and IRAs 

12. The Applicant submits that the 

proposed exemption, if granted, would 

be protective of affected ERISA-covered 

plans and IRAs. The Applicant 

represents that the criminal conduct of 

Credit Suisse AG that is the subject of 

the Conviction did not directly or 

indirectly involve the assets of any 

ERISA-covered plan or IRA. The 

Applicant also represents that neither 

the Credit Suisse Affiliated QPAMs nor 

the Credit Suisse Related QPAMs 

(including the officers, directors, 

employees, or agents of such QPAMs) 

participated in the criminal conduct 

that forms the basis for the Conviction. 

Additionally, the Applicant represents 

that neither the Credit Suisse Affiliated 

QPAMs nor the Credit Suisse Related 

QPAMs directly received any 

compensation in connection with such 

conduct. Finally, the Applicant states 

that Credit Suisse AG, the entity to be 

convicted, did not provide any fiduciary 

services to ERISA-covered plans or 

IRAs, except in connection with certain 

securities lending services of the New 

York Branch of Credit Suisse AG, or act 

as a QPAM for any ERISA-covered plan 

or IRA. 

Credit Suisse Affiliated QPAMs. The 

Applicant explains that Credit Suisse 

Affiliated QPAMs are part of the Asset 

Management business in the U.S. and 

the U.K., whereas the Relationship 

Managers involved in the criminal 

conduct worked for Credit Suisse AG or 

other non-U.S. affiliates in Switzerland. 

Furthermore, the Applicant notes that 

Credit Suisse Affiliated QPAMs 

maintain separate registrations, books 

and records, and accounts from the 

Relationship Managers in Switzerland. 

Additionally, other than research and 

other publicly available information, 

which is provided to many investment 

managers, and which Credit Suisse 

Affiliated QPAMs receive from 

hundreds of analysts and investment 

banks, asset management decisions and 

asset management operations of Credit 

Suisse Affiliated QPAMs are 

independent of (i.e., not influenced by) 

Credit Suisse AG’s management and 

business activities. The Applicant 

represents that the trading decisions and 

investment strategy of Credit Suisse 

Affiliated QPAMs for their clients is not 

shared with Credit Suisse AG 

employees outside of the asset 

management division, nor does the asset 

management division consult with other 

parts of the Credit Suisse AG 

organization prior to making investment 

decisions on behalf of its clients. 

Credit Suisse Related QPAMs. The 

Applicant represents that Credit Suisse 

AG’s relationships to many of the 

entities that may be considered Credit 

Suisse Related QPAMs is so minimal 

that Credit Suisse AG does not know if 

such entities are acting as QPAMs in 

reliance on the relief in PTE 84–14. 

Furthermore, the Applicant represents 

that any such Credit Suisse Related 

QPAMs maintain their own information 

and technology infrastructure and do 

not share office space or employees with 

Credit Suisse AG. According to the 

Applicant, such Credit Suisse Related 

QPAMs are entirely separate and 

distinct from Credit Suisse AG. 

Furthermore, the Applicant states that 

no employee of Credit Suisse AG sits on 

the board of directors of any Credit 

Suisse Related QPAM. The Applicant 

explains that Credit Suisse AG does not 

have the power to exercise a controlling 

influence over the management or 

policies of such QPAMs. Additionally, 

the Applicant’s investments in such 

QPAMs are intended to be, and are, 

passive investments. The Applicant 

adds that Credit Suisse AG does not 

have the power to exercise a controlling 

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52368 Federal Register / Vol. 79, No. 170 / Wednesday, September 3, 2014 / Notices 

7Section VI(e) of PTE 84–14 defines the term 

‘‘control’’ as the power to exercise a controlling 

influence over the management or policies of a 

person other than an individual. 

influence over the investment 

management decisions of these 

managers. Therefore, the Applicant 

maintains that Credit Suisse AG has no 

‘‘control’’ over such Credit Suisse 

Related QPAMs as that term is defined 

in Section VI(e) of PTE 84–14.7

13. The Applicant represents that if 

this proposed exemption is granted, 

Credit Suisse Affiliated QPAMs will not 

use their authority or influence to direct 

an investment fund (as defined in 

Section VI(b) of PTE 84–14) managed by 

a Credit Suisse Affiliated QPAM to enter 

into any transaction with Credit Suisse 

AG or engage Credit Suisse AG to 

provide additional services, for a fee, to 

the investment fund regardless of 

whether such transactions or services 

may otherwise be within the scope of 

relief provided by an administrative or 

statutory exemption. Additionally, the 

Applicant represents that any employee 

accused of engaging in the criminal 

conduct that underlies the Conviction 

will not transact business on behalf of 

any investment fund managed by the 

Credit Suisse Affiliated QPAMs. 

14. The Department notes that the 

proposed exemption, if granted, 

provides additional protection to 

affected ERISA-covered plans and IRAs 

because it requires a prudently selected, 

independent auditor, who has 

appropriate technical training and 

proficiency with Title I of ERISA, to 

evaluate the adequacy of and 

compliance with the policy and training 

requirements described below. The first 

of the audits must be completed no later 

than twelve (12) months after a final 

exemption for the covered transactions 

is granted in the Federal Register and 

must cover the first six-month period 

that begins on the date a final 

exemption is granted in the Federal 

Register; all subsequent audits must 

cover the following corresponding 

twelve-month periods and be completed 

no later than 6 months after the period 

to which it applies. The auditor shall 

determine whether Credit Suisse AG 

and the Credit Suisse Affiliated QPAMs 

have developed, implemented, 

maintained, and followed written 

policies (the Policies) requiring and 

designed to ensure that: (i) The asset 

management decisions and asset 

management operations of the Credit 

Suisse Affiliated QPAMs are conducted 

independently of Credit Suisse AG’s 

management and business activities; (ii) 

Credit Suisse AG and the Credit Suisse 

Affiliated QPAMs fully comply with 

ERISA’s fiduciary duties and prohibited 

transaction provisions, and do not 

knowingly participate in any violations 

of these duties and provisions; (iii) 

Credit Suisse AG and the Credit Suisse 

Affiliated QPAMs do not knowingly 

participate in any other person’s 

violation of ERISA, the Code, or other 

federal, state, or local law; (iv) any 

filings or statements made to federal, 

state, or local government are accurate 

and complete; (v) Credit Suisse AG and 

the Credit Suisse Affiliated QPAMs do 

not make material misrepresentations or 

omit material information in their 

communications with federal, state, or 

local government, or their ERISAcovered plan and IRA clients; (vi) Credit 

Suisse AG and the Credit Suisse 

Affiliated QPAMs comply with the 

terms of this exemption; and (vii) any 

violations of or failure to comply with 

items (ii) through (vi) are promptly 

reported in writing to appropriate 

corporate officers, the head of Credit 

Suisse U.S. Asset Management 

Compliance, the General Counsel for 

Credit Suisse Asset Management, the 

independent auditor responsible for 

reviewing compliance with the Policies, 

and a non-QPAM fiduciary of any 

affected ERISA-covered plan or IRA. 

15. The independent auditor shall 

also determine whether Credit Suisse 

AG and the Credit Suisse Affiliated 

QPAMs have developed a training 

program (the Training) for Credit Suisse 

AG and Credit Suisse Affiliated QPAM 

personnel covering, at a minimum, the 

Policies, ERISA compliance, the 

consequences for not complying with 

the conditions of this proposed 

exemption, if granted, (including the 

loss of the exemptive relief provided 

herein), prompt reporting of 

wrongdoing, and ethical conduct. The 

auditor shall also determine whether 

Credit Suisse AG and the Credit Suisse 

Affiliated QPAMs are operationally 

compliant with the Policies and 

Training. 

16. The auditor shall provide a 

written report (the Audit Report), upon 

completion of each audit that it 

conducts, to Credit Suisse AG and the 

Credit Suisse Affiliated QPAMs that 

describes the auditor’s determinations 

as required under this proposed 

exemption, if granted, and the steps 

performed by the auditor during the 

course of the auditor’s examinations. 

The Report will also include the 

auditor’s determinations with regards to 

the adequacy of the Policies and the 

Training and any recommendations 

with respect to strengthening the 

Policies and Training, and any instances 

of Credit Suisse AG’s or the Credit 

Suisse Affiliated QPAMs’ 

noncompliance with the written 

Policies and Training described 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 shall be promptly addressed by 

Credit Suisse AG and the Credit Suisse 

Affiliated QPAMs, and any actions 

taken by Credit Suisse AG or the Credit 

Suisse Affiliated QPAMs to address 

such recommendations shall be 

included in an addendum to the Audit 

Report. 

17. The auditor shall notify Credit 

Suisse AG and the Credit Suisse 

Affiliated QPAMs 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. 

Credit Suisse AG or a Credit Suisse 

Affiliated QPAM shall provide written 

notice to the Department’s Office of 

Exemption Determinations (OED) of any 

instances of noncompliance reviewed 

by the auditor within ten (10) business 

days after such notice is received from 

the auditor. Upon request, the auditor 

shall provide OED with all of the 

relevant workpapers reflecting any 

instances of noncompliance. The 

workpapers shall identify whether and 

to what extent the assets of ERISAcovered plans or IRAs were involved in 

the instance(s) of noncompliance and an 

explanation of any corrective actions 

taken by Credit Suisse AG. 

18. An executive officer of Credit 

Suisse AG will certify in writing, under 

penalty of perjury, that such officer has 

reviewed each Audit Report and this 

exemption, addressed 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. Similarly, an executive 

officer of each Credit Suisse Affiliated 

QPAM will certify in writing, under 

penalty of perjury, that such officer has 

reviewed each Audit Report and this 

exemption, addressed 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. Finally, the Applicant 

provides each certified Audit Report to 

OED no later than 30 days following its 

completion and Credit Suisse AG and 

the Credit Suisse Affiliated QPAMs 

make the Audit Report unconditionally 

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Federal Register / Vol. 79, No. 170 / Wednesday, September 3, 2014 / Notices 52369 

available for examination by any duly 

authorized employee or representative 

of the Department, or other relevant 

regulators, and any fiduciary of an 

ERISA-covered plan or IRA, the assets of 

which are managed by a Credit Suisse 

Affiliated QPAM. 

19. The Department notes that the 

proposed exemption, if granted, will 

also be protective of plans and their 

participants and beneficiaries, because, 

in any agreements with ERISA-covered 

plans or IRAs for the provision of asset 

management or other services, Credit 

Suisse AG and the Credit Suisse 

Affiliated QPAMs will contain 

additional protective covenants 

described herein. In this regard, in such 

agreements, Credit Suisse AG or a Credit 

Suisse Affiliated QPAM, as applicable, 

must agree to comply with ERISA and 

to refrain from engaging in prohibited 

transactions; must not purport to waive, 

limit, or qualify the liability of Credit 

Suisse AG or the Credit Suisse Affiliated 

QPAMs for violating ERISA or engaging 

in prohibited transactions; must not 

require the ERISA-covered plans or 

IRAs (or sponsors of such ERISAcovered plans or IRAs) to indemnify 

Credit Suisse AG or the Credit Suisse 

Affiliated QPAMs for violating ERISA or 

engaging in prohibited transactions; 

must not restrict the ability of such 

ERISA-covered plans or IRAs to 

terminate or withdraw from their 

arrangements with Credit Suisse AG or 

the Credit Suisse Affiliated QPAMs; and 

must not impose any fees, penalties, or 

charges for such termination or 

withdrawal. 

20. The Department also notes that a 

Credit Suisse Affiliated QPAM will not 

fail to meet the terms of this proposed 

exemption, if granted, solely because a 

Credit Suisse Related QPAM fails to 

satisfy a condition for relief under this 

exemption. Additionally, a Credit 

Suisse Related QPAM will not fail to 

meet the terms of this proposed 

exemption, if granted, 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. 

21. The Applicant represents that if a 

final exemption is granted in the 

Federal Register, Credit Suisse AG and 

the Credit Suisse Affiliated QPAMs will 

maintain records necessary to 

demonstrate that the conditions of this 

exemption have been met for six (6) 

years following the date of any 

transactions for which Credit Suisse 

Affiliated QPAMs rely upon the relief in 

the exemption. 

22. The Applicant represents further 

that, if this proposed exemption is 

granted, Credit Suisse AG will provide 

to (1) each sponsor of an ERISA-covered 

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 subadvisor to the investment fund; (2) each 

entity that may be a Credit Suisse 

Related QPAM; and (3) each ERISAcovered plan for which the New York 

Branch of Credit Suisse AG provides 

fiduciary securities lending services, a 

notice of the proposed exemption, along 

with a separate summary of 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. 

23. Finally, the Applicant represents 

that the proposed exemption will 

protect the interests of affected ERISAcovered Plans and IRAs because it 

would allow the Credit Suisse Affiliated 

QPAMs to engage in transactions 

described in PTE 84–14 only to the 

extent that all of the longstanding 

conditions set forth in PTE 84–14 

(except for Section I(g), as a result of the 

Conviction) are fully met. 

Statutory Findings—Administratively 

Feasible 

24. The Applicant represents that the 

requested exemption is administratively 

feasible because it does not require any 

monitoring by the Department but relies 

on an independent auditor to determine 

that Credit Suisse AG’s and the 

Affiliated QPAMs’ compliance policies, 

and the conditions for the exemption, 

are being followed. Furthermore, 

compliance with other sections of PTE 

84–14 has been determined to be 

administratively feasible by the 

Department in many other similar cases. 

Notice to Interested Persons 

Notice of the proposed exemption (the 

Notice) will be provided to all interested 

persons within five (5) 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 thirty-five (35) days 

of the publication of the Notice in the 

Federal Register. 

All comments will be made available 

to the public. Warning: 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 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. 

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52370 Federal Register / Vol. 79, No. 170 / Wednesday, September 3, 2014 / Notices 

8For 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. 

9 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). 

10Section 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. 

Proposed Exemption 

Based on the foregoing facts and 

representations submitted by the 

Applicant, 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).8

Section I: Covered Transactions 

If the proposed exemption is granted, 

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 9 notwithstanding the Conviction (as 

defined in Section II(c),10 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, 

employees, and agents 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 described 

in section 3(3) of ERISA (an ERISAcovered plan) or section 4975(e)(1) 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) The Credit Suisse Affiliated 

QPAMs will not use their authority or 

influence to direct an investment fund 

(as defined in Section VI(b) of PTE 84– 

14) managed by a Credit Suisse 

Affiliated QPAM to enter into any 

transaction with Credit Suisse AG or 

engage Credit Suisse AG to provide 

additional services, for a fee, to the 

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) Credit Suisse AG and the Credit 

Suisse Affiliated QPAMs will ensure 

that no employee or agent involved in 

the criminal conduct that underlies the 

Conviction will engage in transactions 

on behalf of any investment fund (as 

defined in Section VI(b) of PTE 84–14) 

managed by the Credit Suisse Affiliated 

QPAMs; 

(h)(1) Credit Suisse AG and the Credit 

Suisse Affiliated QPAMs immediately 

develop, implement, maintain, and 

follow written policies (the Policies) 

requiring and designed to ensure that: 

(i) The asset management decisions and 

asset management operations of the 

Credit Suisse Affiliated QPAMs are 

conducted independently of Credit 

Suisse AG’s management and business 

activities; (ii) Credit Suisse AG and the 

Credit Suisse Affiliated QPAMs fully 

comply with ERISA’s fiduciary duties 

and prohibited transaction provisions, 

and do not knowingly participate in any 

violations of these duties and 

provisions; (iii) Credit Suisse AG and 

the Credit Suisse Affiliated QPAMs do 

not knowingly participate in any other 

person’s violation of ERISA, the Code, 

or other federal, state, or local law; (iv) 

any filings or statements made to 

federal, state, or local government are 

accurate and complete; (v) Credit Suisse 

AG and the Credit Suisse Affiliated 

QPAMs do not make material 

misrepresentations or omit material 

information in their communications 

with federal, state, or local government, 

or their ERISA-covered plan and IRA 

clients; (vi) Credit Suisse AG and the 

Credit Suisse Affiliated QPAMs comply 

with the terms of this exemption; and 

(vii) any violations of or failure to 

comply with items (ii) through (vi) are 

promptly reported in writing to 

appropriate corporate officers, the head 

of U.S. Asset Management Compliance, 

the General Counsel for Asset 

Management, the independent auditor 

responsible for reviewing compliance 

with the Policies, and a non-QPAM 

fiduciary of any affected ERISA-covered 

plan or IRA; 

(2) Credit Suisse AG and the Credit 

Suisse Affiliated QPAMs also 

immediately develop and implement a 

program of training (the Training), 

conducted at least annually for Credit 

Suisse AG and Credit Suisse Affiliated 

QPAM personnel; at a minimum, the 

training covers the Policies, ERISA 

compliance (including fiduciary duties 

and the prohibited transaction 

provisions) and ethical conduct, the 

consequences for not complying with 

the conditions of this proposed 

exemption, if granted, (including the 

loss of the exemptive relief provided 

herein), prompt reporting of 

wrongdoing; 

(i)(1) Credit Suisse AG and the Credit 

Suisse Affiliated QPAMs submit 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 the policies and training 

required in paragraph (h), as well as 

compliance with those requirements; 

the first of the audits must be completed 

no later than twelve (12) months after a 

final exemption for the covered 

transactions is granted in the Federal 

Register. The first audit must cover the 

first six-month period that begins on the 

date a final exemption is granted in the 

Federal Register; all subsequent audits 

must cover the following corresponding 

twelve-month periods and be completed 

no later than 6 months after the period 

to which the audit applies; 

(2) The auditor’s engagement shall 

specifically require the auditor to 

determine whether Credit Suisse AG 

and the Credit Suisse Affiliated QPAMs 

have developed, implemented, 

maintained, and followed Policies in 

accordance with the conditions of this 

proposed exemption and developed and 

implemented the Training, as required 

herein; 

(3) The auditor shall test Credit Suisse 

AG’s and 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 QPAMs 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 Credit 

Suisse AG’s or the Credit Suisse 

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Federal Register / Vol. 79, No. 170 / Wednesday, September 3, 2014 / Notices 52371 

11 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 

such bank, savings and loan association, insurance 

company, or investment adviser has acknowledged 

in a written management agreement that it is a 

fiduciary with respect to each plan that has retained 

the QPAM. 

Affiliated QPAMs’ 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 shall be promptly addressed by 

Credit Suisse AG and the Credit Suisse 

Affiliated QPAMs, and any actions 

taken by Credit Suisse AG or the Credit 

Suisse Affiliated QPAMs to address 

such recommendations shall be 

included in an addendum to the Audit 

Report. Any determinations by the 

auditor that Credit Suisse AG and the 

Credit Suisse Affiliated QPAMs have 

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 Credit 

Suisse AG and the Credit Suisse 

Affiliated QPAMs 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. 

Credit Suisse AG or a Credit Suisse 

Affiliated QPAM shall provide written 

notice to the Department’s Office of 

Exemption Determinations (OED), Room 

N–5700, 200 Constitution Avenue NW., 

Washington, DC 20210: Of any instances 

of noncompliance reviewed by the 

auditor within ten (10) business days 

after such notice is received from the 

auditor. Upon request, the auditor shall 

provide OED with all of the relevant 

workpapers reflecting any instances of 

noncompliance. The workpapers shall 

identify whether and to what extent the 

assets of ERISA-covered plans or IRAs 

were involved in the instance(s) of 

noncompliance and an explanation of 

any corrective actions taken by Credit 

Suisse AG; 

(6) With respect to each audit, an 

executive officer of Credit Suisse AG 

and an executive officer of each Credit 

Suisse Affiliated QPAM certifies in 

writing, under penalty of perjury, that 

the respective officer has reviewed the 

Audit Report and this exemption, 

addressed 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) Credit Suisse AG provides each 

certified Audit Report to OED no later 

than 30 days following its completion 

and Credit Suisse AG and the Credit 

Suisse Affiliated QPAMs make the 

Audit Report unconditionally available 

for examination by any duly authorized 

employee or representative of the 

Department, or other relevant regulators, 

and any fiduciary of an ERISA-covered 

plan or IRA, the assets of which are 

managed by a 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) In any agreements with ERISAcovered plans or IRAs for the provision 

of asset management or other services, 

Credit Suisse AG and the Credit Suisse 

Affiliated QPAMs agree to comply with 

ERISA and to refrain from engaging in 

prohibited transactions; the agreements 

do not purport to waive, limit, or qualify 

the liability of Credit Suisse AG or the 

Credit Suisse Affiliated QPAMs for 

violating ERISA or engaging in 

prohibited transactions; the agreements 

do not require the ERISA-covered plans 

or IRAs (or sponsors of such ERISAcovered plans or IRAs) to indemnify 

Credit Suisse AG or the Credit Suisse 

Affiliated QPAMs for violating ERISA or 

engaging in prohibited transactions; the 

agreements do not restrict the ability of 

such ERISA-covered plans or IRAs to 

terminate or withdraw from their 

arrangements with Credit Suisse AG or 

the Credit Suisse Affiliated QPAMs; and 

the agreements do not impose any fees, 

penalties, or charges for such 

termination or withdrawal; 

(l) After a final exemption is granted 

in the Federal Register, Credit Suisse 

AG and the Credit Suisse Affiliated 

QPAMs will maintain records necessary 

to demonstrate that the conditions of 

this exemption have been met for six (6) 

years following the date of any 

transactions for which Credit Suisse 

Affiliated QPAMs rely 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 this notice of 

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 

proposed exemption, if granted, solely 

because a Credit Suisse Related 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 proposed exemption, if 

granted, 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) 11 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 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 28th day of 

August, 2014. 

Lyssa Hall, 

Director of Exemption Determinations, 

Employee Benefits Security Administration, 

U.S. Department of Labor. 

[FR Doc. 2014–20884 Filed 9–2–14; 8:45 am] 

BILLING CODE 4510–29–P 

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