Securities Cross-Trading - ERISA Final Rule

Extract

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Securities Cross-Trading - ERISA Final Rule

The Pension Plan Protection Act of 2006 added to ERISA a new

section 408(b)(19), which provides an exemption for the

"cross-trading" of securities between accounts managed by

the same investment manager, subject to certain conditions. In

addition, Congress provided that the U.S. Department of Labor

("DOL"), after consultation with the U.S. Securities and

Exchange Commission (the "SEC"), was to issue regulations

within six months of the date of enactment regarding the content of

the written policies and procedures that an investment manager is

required to adopt to qualify for the exemptive relief.

In February 2007 ? just within the six-month deadline

? DOL issued an interim final regulation, effective April

13, 2007. Statutory Exemption for Cross-Trading of Securities,

interim final rule with request for comments, 72 Fed. Reg. 6473

(Feb. 12, 2007). DOL also solicited comments on a number of

issues.

DOL has now issued a final regulation. Statutory Exemption for

Cross-Trading of Secur...

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