56740 Federal Register / Vol. 78, No. 178 / Friday, September 13, 2013 / Notices 

1 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). 

2For 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. 

An individual who is the subject of a 

record in this system may seek 

amendment of those records that are not 

exempt. A determination whether a 

record may be amended will be made at 

the time a request is received. 

RECORD SOURCE CATEGORIES: 

Sources of information contained in 

this system include federal, state, local, 

tribal, territorial, and foreign law 

enforcement agencies, informants, 

members of the public, the public 

media, and the private sector, including 

commercial data brokers. 

EXEMPTIONS CLAIMED FOR THE SYSTEM: 

The Attorney General has exempted 

this system from subsections (c)(3) and 

(4); (d)(1), (2), (3), and (4); (e)(1), (2), and 

(3), (4)(G), (H), and (I), (5), and (8); (f); 

and (g) of the Privacy Act pursuant to 

5 U.S.C. 552a(j) and (k). Rules have been 

promulgated in accordance with the 

requirements of 5 U.S.C. 553(b), (c), and 

(e) and have been published in today’s 

Federal Register. 

[FR Doc. 2013–22374 Filed 9–12–13; 8:45 am] 

BILLING CODE 4410–CW–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

[Prohibited Transaction Exemption 2013– 

09; Application No. D–11772] 

Grant of Individual Exemption 

Involving UBS AG (UBS or the 

Applicant); Located in Zurich, 

Switzerland 

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 UBS, and certain 

entities within UBS’s Global Asset 

Management and Wealth Management 

Americas divisions that function as 

‘‘qualified professional asset managers’’ 

(QPAMs) under Prohibited Transaction 

Class Exemption 84–14 (PTE 84–14).1

The individual exemption affects UBS 

QPAMS, and participants and 

beneficiaries of ERISA plans the assets 

of which plan are managed by a UBS 

QPAM. 

DATES: Effective Date: This exemption is 

effective as of the date a judgment of 

conviction against UBS Securities Japan 

for wire fraud is entered in the District 

Court of Connecticut in Case Number 

3:12-cr-00268–RNC. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Erin S. Hesse of the Department, 

telephone (202) 693–8546. (This is not 

a toll-free number.) 

SUPPLEMENTARY INFORMATION: On July 9, 

2013, the Department of Labor (the 

Department) published a notice of 

proposed individual exemption in the 

Federal Register at 78 FR 41105, such 

that entities within UBS’s Global Asset 

Management and Wealth Management 

Americas divisions that function as 

QPAMs, would not be precluded from 

relying on the relief provided by PTE 

84–14, solely due to the failure to satisfy 

the condition in section I(g) of PTE 84– 

14 as a result of their affiliation with 

UBS Securities Japan Co. Ltd., against 

whom a judgment of conviction for one 

count of wire fraud is scheduled to be 

entered in the District Court of 

Connecticut in Case Number 3:12–cr– 

00268–RNC. The proposed exemption 

was requested by UBS 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).2 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 

and/or requests for a public hearing 

with respect to the notice of proposed 

exemption. All comments and requests 

for hearing were due by August 11, 

2013. During the comment period, the 

Department received no comments and 

no requests for a hearing from interested 

persons. Accordingly, after giving full 

consideration to the entire record, the 

Department has decided to grant the 

exemption. The complete application 

file (Application No. D–11772), 

including all supplemental submissions 

received by the Department, is available 

for public inspection in the Public 

Disclosure Room of the Employee 

Benefits Security Administration, Room 

N–1513, U.S. Department of Labor, 200 

Constitution Avenue 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 notice of 

proposed exemption published on July 

9, 2013, at 78 FR 41105. 

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) In accordance with section 408(a) 

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

the Code, the Department makes the 

following determinations: the 

exemption is administratively feasible, 

the exemption is in the interests of the 

plan and of its participants and 

beneficiaries, and the exemption is 

protective of the rights of participants 

and beneficiaries of the plan; 

(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) 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 78, No. 178 / Friday, September 13, 2013 / Notices 56741 

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

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

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

38837 (July 6, 2010). 

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): 

Exemption 

Entities within UBS’s Global Asset 

Management and Wealth Management 

Americas divisions that function as 

‘‘qualified professional asset managers’’ 

(QPAMs), shall not be precluded from 

relying on the relief provided by 

Prohibited Transaction Exemption 84– 

14 (PTE 84–14),3 solely due to the 

failure to satisfy the condition in section 

I(g) of PTE 84–14 as a result of their 

affiliation with UBS Securities Japan Co. 

Ltd. (UBS Securities Japan), against 

whom a judgment of conviction for one 

count of wire fraud (the Conviction) is 

scheduled to be entered in the District 

Court of Connecticut in Case Number 

3:12-cr-00268–RNC, provided the 

following conditions are satisfied: 

(a) No ERISA-covered assets were 

involved in, or directly affected by, the 

conduct of UBS Securities Japan that is 

the subject of the Conviction. For 

purposes of this paragraph, ERISAcovered assets are not considered 

directly affected solely because an 

ERISA plan held an economic interest 

in a security or investment product, the 

value of which was tied to one of the 

benchmark interest rates manipulated in 

connection with conduct by certain UBS 

personnel; 

(b) The entities acting as QPAMs 

within UBS’s Global Asset Management 

and Wealth Management Americas 

divisions (UBS QPAMs) did not know 

of, have reason to know of, participate 

in, or directly receive compensation in 

connection with, the conduct by certain 

UBS personnel that gave rise to the 

manipulation of certain benchmark 

interest rates; 

(c) UBS Securities Japan did not 

provide any fiduciary services to, or act 

as a QPAM for, ERISA plans or 

otherwise exercise any discretionary 

control over ERISA-covered assets; 

(d) UBS Securities Japan will not 

enter into any transactions with funds 

managed by UBS QPAMs or provide any 

services to UBS QPAMs; 

(e) UBS QPAMs were insulated from 

UBS Securities Japan due to: (1) The 

independent business operations of the 

Wealth Management Americas and 

Global Asset Management divisions 

from UBS’s other divisions, and (2) 

Written policies and procedures which 

created information barriers that were in 

place to ensure that the UBS QPAMs, 

and the ERISA-covered assets they 

manage, were not affected by the 

business activities of UBS affiliates 

within the Investment Bank division, 

such as UBS Securities Japan; 

(f) UBS maintains and follows written 

policies and procedures that create 

information barriers designed to ensure 

UBS QPAMs, and the ERISA-covered 

assets they manage, are not affected by 

the business activities of UBS affiliates 

within the Investment Bank division, 

such as UBS Securities Japan. UBS also 

develops and implements a program of 

training for UBS personnel regarding 

such written policies and procedures; 

(g) UBS submits to an annual audit 

which meets the following 

requirements: 

(1) An independent auditor, who has 

appropriate technical training and 

proficiency with Title I of ERISA, shall 

conduct an annual written audit; 

(2) The audit shall specifically require 

the auditor to determine whether UBS 

has continued to maintain and follow, 

and developed and implemented a 

training program with respect to, 

written policies and procedures that 

create information barriers designed to 

ensure that the UBS QPAMs, and the 

ERISA-covered assets they manage, are 

not improperly influenced or affected by 

the business activities of UBS affiliates 

within the Investment Bank division, 

such as UBS Securities Japan; 

(3) The audit shall test operational 

compliance with the training 

requirements and written policies and 

procedures requirements described in 

paragraph (f); 

(4) The auditor shall issue a written 

report (the Audit Report) describing 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 training requirements 

and written policies and procedures 

requirements described in paragraph (f), 

the auditor’s recommendations (if any) 

with respect to strengthening such 

training requirements and policies and 

procedures, and any instances of UBS’s 

noncompliance with developing and 

implementing such training 

requirements and policies and 

procedures. Any determinations made 

by the auditor as a result of the audit 

regarding the adequacy of the training 

requirements and written policies and 

procedures requirements described in 

paragraph (f) and the auditor’s 

recommendations (if any) with respect 

to strengthening such training 

requirements and policies and 

procedures shall be promptly addressed 

by UBS, and any actions taken by UBS 

to address such recommendations 

should be included in an addendum to 

the Audit Report. Any determinations 

by the auditor that UBS has developed 

and maintained sufficient written 

policies and procedures, and developed 

and maintained a training program 

regarding such policies and procedures, 

shall not be based solely or in 

substantial part on an absence of 

evidence indicating noncompliance; 

(5) UBS shall provide notice to the 

Department’s Office of Exemption 

Determinations (OED) of any instances 

of UBS’s noncompliance reviewed by 

the auditor within ten (10) business 

days after such noncompliance is 

determined by the auditor, regardless of 

whether the audit has been completed 

as of that date. Upon request, the 

auditor shall provide OED with all of 

the relevant workpapers reflecting the 

instances of noncompliance. The 

workpapers should identify whether 

and to what extent the assets of ERISA 

plans were involved in the instance(s) of 

noncompliance and an explanation of 

any corrective actions taken by UBS; 

(6) The yearly Audit Report will be 

provided to OED no later than 90 days 

following the 12-month period to which 

it relates and will be unconditionally 

available for examination by any duly 

authorized employee or representative 

of the Department, Internal Revenue 

Service, U.S. Commodity Futures 

Trading Commission, U.S. Department 

of Justice, Japanese Financial Services 

Authority, other relevant regulators, and 

any fiduciary of an ERISA plan the 

assets of which plan are managed by a 

UBS QPAM; 

(7) This audit requirement in 

paragraph (g) herein shall continue to be 

applicable for five (5) years from the 

date of Conviction; 

(h) Notwithstanding the Conviction, 

UBS complies with each condition of 

PTE 84–14, as amended; 

(i) UBS imposes its internal 

procedures, controls, and protocols on 

UBS Securities Japan to: (1) Reduce the 

likelihood of any recurrence of conduct 

that is the subject of the Conviction, and 

(2) Comply in all material respects with 

the Business Improvement Order, dated 

December 16, 2011, issued by the 

Japanese Financial Services Authority; 

(j) UBS complies in all material 

respects with the audit and monitoring 

procedures imposed on UBS by the 

United States Commodity Futures 

Trading Commission Order, dated 

December 19, 2012; 

(k) UBS maintains records necessary 

to demonstrate that the conditions of 

this exemption have been met for six (6) 

years following the completion date of 


tkelley on DSK3SPTVN1PROD with NOTICES
56742 Federal Register / Vol. 78, No. 178 / Friday, September 13, 2013 / Notices 

the last audit conducted in accordance 

with paragraph (g); and 

(l) Each sponsor of an ERISA plan the 

assets of which plan are managed by a 

UBS QPAM receives: Notice of the 

proposed exemption with a copy of the 

summary of facts that led to the 

Conviction, which was submitted to the 

Department; and a prominently 

displayed statement that the Conviction 

results in a failure to meet a condition 

in PTE 84–14. 

Effective Date: This exemption is 

effective as of the date a judgment of 

conviction against UBS Securities Japan 

for wire fraud is entered in the District 

Court of Connecticut in Case Number 

3:12–cr–00268–RNC. 

Signed at Washington, DC, this 9th day of 

September, 2013. 

Lyssa E. Hall, 

Director, Office of Exemption Determinations, 

Employee Benefits Security Administration, 

U.S. Department of Labor. 

[FR Doc. 2013–22314 Filed 9–12–13; 8:45 am] 

BILLING CODE 4510–29–P 

DEPARTMENT OF LABOR 

Occupational Safety and Health 

Administration 

[Docket No. OSHA–2013–0021] 

Revision of Approved Information 

Collection (Paperwork) Requirements 

for Office of Management and Budget 

(OMB) Approval; Cranes and Derricks 

in Construction 

AGENCY: Occupational Safety and Health 

Administration (OSHA), Labor. 

ACTION: Request for public comments. 

SUMMARY: OSHA solicits public 

comments concerning its proposal to 

revise OMB’s approval of the 

information collection requirements 

contained in the Cranes and Derricks in 

Construction Standard (29 CFR part 

1926, Subpart CC). Employers and 

workers use these requirements to help 

ensure the safe operation of equipment 

covered by the standard. In addition, 

OSHA compliance safety and health 

officers use the information to 

determine, during an inspection, 

whether employers are complying with 

the requirements. In May 2013, OSHA 

published a final rule that broadened 

the exemption for digger derricks in the 

Cranes and Derricks Standard in 

Construction Subpart CC. As a result, 

OSHA is revising the Cranes and 

Derricks Standard in Construction 

paperwork analysis by reducing the 

number of entities that are required to 

comply with these information 

collection requirements. 

DATES: Comments must be submitted 

(postmarked, sent, or received) by 

November 12, 2013. 

ADDRESSES: 

Electronically: You may submit 

comments and attachments 

electronically at http://

www.regulations.gov, which is the 

Federal eRulemaking Portal. Follow the 

instructions online for submitting 

comments. 

Facsimile: If your comments, 

including attachments, are not longer 

than 10 pages you may fax them to the 

OSHA Docket Office at (202) 693–1648. 

Mail, hand delivery, express mail, 

messenger, or courier service: When 

using this method, you must submit a 

copy of your comments and attachments 

to the OSHA Docket Office, Docket No. 

OSHA–2013–0021, U.S. Department of 

Labor, Occupational Safety and Health 

Administration, Room N–2625, 200 

Constitution Avenue NW., Washington, 

DC 20210. Deliveries (hand, express 

mail, messenger, and courier service) 

are accepted during the Department of 

Labor’s and Docket Office’s normal 

business hours, 8:15 a.m. to 4:45 p.m., 

e.t. 

Instructions: All submissions must 

include the Agency name and OSHA 

docket number for the Information 

Collection Request (ICR) (OSHA–2013– 

0021). All comments, including any 

personal information you provide, are 

placed in the public docket without 

change, and may be made available 

online at http://www.regulations.gov. 

For further information on submitting 

comments see the ‘‘Public 

Participation’’ heading in the section of 

this notice titled SUPPLEMENTARY

INFORMATION. 

Docket: To read or download 

comments or other material in the 

docket, go to http://www.regulations.gov 

or the OSHA Docket Office at the 

address above. All documents in the 

docket (including this Federal Register 

notice) are listed in the http://

www.regulations.gov index; however, 

some information (e.g., copyrighted 

material) is not publicly available to 

read or download through the Web site. 

All submissions, including copyrighted 

material, are available for inspection 

and copying at the OSHA Docket Office. 

You may also contact Theda Kenney at 

the address below to obtain a copy of 

the ICR. 

FOR FURTHER INFORMATION CONTACT: 

Todd Owen or Theda Kenney, 

Directorate of Standards and Guidance, 

OSHA, U.S. Department of Labor, Room 

N–3609, 200 Constitution Avenue NW., 

Washington, DC 20210; telephone (202) 

693–2222. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Department of Labor, as part of its 

continuing effort to reduce paperwork 

and respondent (i.e., employer) burden, 

conducts a preclearance consultation 

program to provide the public with an 

opportunity to comment on proposed 

and continuing information collection 

requirements in accord with the 

Paperwork Reduction Act of 1995 

(PRA–95) (44 U.S.C. 3506(c)(2)(A)). This 

program ensures that information is in 

the desired format, reporting burden 

(time and costs) is minimal, collection 

instruments are clearly understood, and 

OSHA’s estimate of the information 

collection burden is accurate. The 

Occupational Safety and Health Act of 

1970 (the OSH Act) (29 U.S.C. 651 et 

seq.) authorizes information collection 

by employers as necessary or 

appropriate for enforcement of the OSH 

Act or for developing information 

regarding the causes and prevention of 

occupational injuries, illnesses, and 

accidents (29 U.S.C. 657). The OSH Act 

also requires that OSHA obtain such 

information with minimum burden 

upon employers, especially those 

operating small businesses, and to 

reduce to the maximum extent feasible 

unnecessary duplication of efforts in 

obtaining information (29 U.S.C. 657). 

The Cranes and Derricks standard’s 

information collection requirements 

impose a duty on employers to produce 

and maintain records that implement 

controls and take other measures to 

protect workers from hazards related to 

cranes and derricks used in 

construction. Accordingly, construction 

businesses with workers who operate or 

work in the vicinity of cranes and 

derricks must have, as applicable, the 

following documents on file and 

available at the job site: Equipment 

ratings, employee training records, 

written authorizations from qualified 

individuals, and qualification program 

audits. During an inspection, OSHA will 

have access to the records to determine 

compliance under conditions specified 

by the standard. An employer’s failure 

to generate and disclose the information 

required in this standard will affect 

significantly the Agency’s effort to 

control and reduce injuries and fatalities 

related to the use of cranes and derricks 

in construction. 

On May 29, 2013, OSHA published a 

final rule expanding the existing diggerderrick exemption to include all digger 

derricks used in construction work 

subject to 29 CFR part 1926 subpart V. 

OSHA revised the exemption in existing 

29 CFR 1926.1400(c)(4) to include 

within the exemption the phrase ‘‘any 


tkelley on DSK3SPTVN1PROD with NOTICES