Statutory Exemption for Cross-Trading of Securities [02/12/2007]

This is an interim final rule regarding the new statutory exemption on cross-trading in the Pension Protection Act (PPA). It exempts the purchase and sale of a security between a plan and any other account managed by the same investment manager if certain conditions are satisfied. Among other requirements, the investment manager must adopt, and effect cross-trades in accordance with, written cross-trading policies and procedures that are fair and equitable to all accounts participating in the cross-trading program. This interim final rule would affect employee benefit plans, investment managers, plan fiduciaries and plan participants and beneficiaries.

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Winter Edition of Retirement News for Employers: Notice 2007-07/PPA Information Page/T.D. 9294 Use of Electronic Media/Automatic Rollover IRAs/Lost Participants/Terminating Plans/Payroll Deduction IRA/Self-Correction Program/401(k) Checklist/DOL News/IRS Form 5558/2007 IRS Tax Calendar/Upcoming Deadlines

Related Links

DOL News Release

DOL Issues Guidelines Under New ERISA Cross-Trading Exemption

DOL Guidance on Cross-Trading Prohibited Transaction Exemption

Winter 2007 Retirement News for Employers

Definition of Cross Trading

SIA Testimony - "Cross-Trading of Securities"

DOL Issues Interim Final Rule on Cross-Trading Policies and Procedures for ERISA Accounts