Employee Retirement Income Security Act Prohibited Transaction Exemption 1986-128 For Securities Transactions Involving Employee Benefit Plans and Broker-Dealers
Revision of a currently approved collection
No
Regular
11/03/2023
Requested
Previously Approved
36 Months From Approved
08/31/2025
33,570
275,745
2,929
2,193
37,034
296,108
Prohibited Transaction Exemption 86-128 (as amended) permits persons who serve as fiduciaries for employee benefit plans to effect or execute securities transactions on behalf of employee benefit plans.
US Code:
29 USC 1108
Name of Law: Employee Retirement Income Security Act of 1974
The number of plans affected has been updated to reflect updated Form 5500 data, and thus, the number of responses has decreased. The estimated number of affected broker-dealer fiduciaries has also been updated to reflect current Securities and Exchange Commission data. In addition, the Department has also revised its estimate of the wage and postage costs due to increased labor costs and inflation.
The Department is proposing to amend PTE 86-128 by adding a recordkeeping requirement for financial institutions. In addition, the amendment would cover IRAs in Section III of the class exemption. Section III imposes information collection requirements on fiduciaries of employee benefit plans and IRAs that affect or execute securities transactions and the independent plan fiduciary authorizing the plan to engage in the transactions with the broker-dealer. Thus, IRAs have been included in this analysis, and thus, the hour burden has increased.
As a result, the number of responses has decreased by 242,175 responses, the hour burden increased by 736 hours, and the cost burden decreased by $259,074.
Finally, the Department is amending PTE 86-128 by removing fiduciary investment advice from the covered transactions. While the Department is proposing to amend PTE 86-128 by removing fiduciary investment advice from the covered transactions, the Department believes that this would result in a marginal change. Thus, this change would not affect the hour and cost burden.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
1210-0059 PTE 86-128 Supporting Statement 11-02-2023.docx
Employee Retirement Income Security Act Prohibited Transaction Exemption 1986-128 For Securities Transactions Involving Employee Benefit Plans and Broker-Dealers