[Federal Register Volume 62, Number 32 (Tuesday, February 18, 1997)]
[Notices]
[Pages 7275-7279]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3838]
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DEPARTMENT OF LABOR
[Prohibited Transaction Exemption 97-12; Exemption Application No. D-
10014, et al.]
Grant of Individual Exemptions; Wells Fargo Bank, N.A. (Wells
Fargo), et al.
AGENCY: Pension and Welfare Benefits Administration, Labor.
ACTION: Grant of individual exemptions.
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SUMMARY: This document contains exemptions issued by the Department of
Labor (the Department) from certain of the prohibited transaction
restrictions of the Employee Retirement Income Security Act of 1974
(the Act) and/or the Internal Revenue Code of 1986 (the Code).
Notices were published in the Federal Register of the pendency
before the Department of proposals to grant such exemptions. The
notices set forth a summary of facts and representations contained in
each application for exemption and referred interested persons to the
respective applications for a complete statement of the facts and
representations. The applications have been available for public
inspection at the Department in Washington, D.C. The notices also
invited interested persons to submit comments on the requested
exemptions to the Department. In addition the notices stated that any
interested person might submit a written request that a public hearing
be held (where appropriate). The applicants have represented that they
have complied with the requirements of the notification to interested
persons. No public comments and no requests for a hearing, unless
otherwise stated, were received by the Department.
The notices of proposed exemption were issued and the exemptions
are being granted solely by the Department because, effective December
31, 1978, section 102 of Reorganization Plan No. 4 of 1978 (43 FR
47713, October 17, 1978) transferred the authority of the Secretary of
the Treasury to issue exemptions of the type proposed to the Secretary
of Labor.
Statutory Findings
In accordance with section 408(a) of the Act and/or section
4975(c)(2) of the Code and the procedures set forth in 29 CFR Part
2570, Subpart B (55 FR 32836, 32847, August 10, 1990) and based upon
the entire record, the Department makes the following findings:
(a) The exemptions are administratively feasible;
(b) They are in the interests of the plans and their participants
and beneficiaries; and
(c) They are protective of the rights of the participants and
beneficiaries of the plans.
Wells Fargo Bank, N.A. (Wells Fargo) Located in San Francisco, CA
[Prohibited Transaction Exemption (PTE) 97-12; Exemption Application
No. D-10014]
Exemption
Section I. Covered Transactions
The restrictions of section 406(a) of the Act and the sanctions
resulting from the application of section 4975 of the Code, by reason
of section 4975(c)(1)(A) through (D) of the Code, shall not apply,
effective October 1, 1995, to the purchase or redemption of shares by
an employee benefit plan (the Plan), in certain mutual funds that are
either affiliated with Wells Fargo (the Affiliated Funds) or are
unaffiliated with Wells Fargo (the Third Party Funds)*, in connection
with the participation by the Plan in the Wells Fargo Portfolio Advisor
Program (the Portfolio Advisor Program).
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* The Affiliated Funds and the Third Party Funds are
collectively referred to herein as the Funds.
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In addition, the restrictions of section 406(b) of the Act and the
sanctions resulting from the application of section 4975 of the Code,
by reason of section 4975(c)(1) (E) and (F) of the Code, shall not
apply, effective October 1, 1995, to the provision, by Wells Fargo, of
asset allocation services to an independent fiduciary of a
participating Plan (the Independent Fiduciary) or to a participant (the
Directing Participant) of a Plan covered under the provisions of
section 404(c) of the Act (the Section 404(c) Plan) which may result in
the selection of portfolios by the Independent Fiduciary or the
Directing Participant in the Portfolio Advisor Program for the
investment of Plan assets.
This exemption is subject to the conditions set forth below in
Section II.
Section II. General Conditions
(a) The participation by each Plan in the Portfolio Advisor Program
is
[[Page 7276]]
approved by an Independent Fiduciary or Directing Participant, in the
case of a Section 404(c) Plan, and, with the exception of Wells Fargo
master and prototype plans, no Plan investing therein is sponsored or
maintained by Wells Fargo and/or its affiliates with respect to their
own employees.
(b) As to each Plan, the total fees that are paid to Wells Fargo
and its affiliates constitute no more than reasonable compensation for
the services provided.
(c) With the exception of distribution-related fees pursuant to
Rule 12b-1 (the 12b-1 Fees) of the Investment Company Act of 1940 which
are offset, no Plan pays a fee or commission by reason of the
acquisition or redemption of shares in the Funds.
(d) The terms of each purchase or redemption of shares in the Funds
remain at least as favorable to an investing Plan as those obtainable
in an arm's length transaction with an unrelated party.
(e) Wells Fargo provides written documentation to each Plan's
Independent Fiduciary or Directing Participant of its recommendations
or evaluations with respect to the Affiliated Funds or the Third Party
Funds based upon objective criteria.
(f) Any recommendation or evaluation made by Wells Fargo to an
Independent Fiduciary or Directing Participant is implemented only at
the express direction of such Independent Fiduciary or Directing
Participant.
(g) The quarterly fee that is paid by a Plan to Wells Fargo and its
affiliates for asset allocation and related services (the Outside Fee)
rendered to such Plan under the Portfolio Advisor Program is offset by
all gross investment management fees (the Advisory Fees) and
administrative fees (the Administrative Fees) received from the
Affiliated Funds by Wells Fargo, its affiliates, its former affiliates
and unrelated parties, including all 12b-1 Fees and Administrative Fees
that are paid by the Affiliated Funds to Stephens Inc. and all 12b-1
Fees that Wells Fargo receives from the Third Party Funds, such that
the sum of the offset and the net Outside Fee will always equal the
Outside Fee and the selection of Affiliated or Third Party Funds will
always be revenue-neutral.
(h) With respect to its participation in the Portfolio Advisor
Program, prior to purchasing shares in the Affiliated Funds and the
Third Party Funds,
(1) Each Independent Fiduciary receives the following written or
oral disclosures from Wells Fargo:
(A) A brochure describing the Portfolio Advisor Program; a
Portfolio Advisor Program Account Agreement; a description of the
allocation models (the Allocation Models); and a reference guide/
disclosure statement providing details about the Portfolio Advisor
Program, the fees charged thereunder, the procedures for establishing,
making additions to and withdrawing from Portfolio Advisor Program
Accounts (the Accounts); and other related information.
(B) A risk tolerance and goal analysis questionnaire (the
Questionnaire).
(C) Copies of applicable prospectuses (the Prospectuses) for the
Funds discussing the investment objectives of the Funds; the policies
employed to achieve these objectives; the corporate affiliation
existing between Wells Fargo and its affiliates; the compensation paid
to such entities; disclosures relating to rebalancing and reallocating
Allocation Models; and information explaining the risks attendant to
investing in the Affiliated Funds or the Third Party Funds.
(D) Upon written or oral request to Wells Fargo, a Statement of
Additional Information supplementing the applicable Prospectus, which
describes the types of securities and other instruments in which the
Funds may invest, the investment policies and strategies that the Funds
may utilize, including a description of the risks.
(E) A copy of the agreement between the Plan and Wells Fargo
relating to such Plan's participation in the Portfolio Advisor Program.
(F) A written recommendation of a specific Allocation Model
together with a copy of the Questionnaire and response.
(G) Upon written request to Wells Fargo, a copy of its investment
advisory agreement and sub-advisory agreement pertaining to the
Affiliated Funds as well as its distribution agreement pertaining to
the Third Party Funds.
(H) Copies of the proposed exemption and grant notice describing
the exemptive relief provided herein.
(I) Written disclosures of Wells Fargo's affiliation or
nonaffiliation with the parties who act as sponsors, distributors,
administrators, investment advisers and sub-advisers, custodians and
transfer agents of the Third Party Funds and the Affiliated Funds; and
(2) In the case of a Section 404(c) Plan,
(A) Wells Fargo provides each Directing Participant or Independent
Fiduciary (for dissemination to the Directing Participant) with copies
of the documents described above in paragraphs (h)(1) (A)-(I); and,
(B) In addition to the written disclosures, an explanation will be
provided to the Independent Fiduciary, upon request, by a Wells Fargo
representative (the Wells Fargo Representative) regarding the services
offered under the Portfolio Advisor Program, including the operation
and objectives of the Funds. Such information will be given to either
the Independent Fiduciary or the Directing Participant.
(3) If accepted as an investor in the Portfolio Advisor Program, an
Independent Fiduciary or Directing Participant is required to
acknowledge, in writing, to Wells Fargo, prior to purchasing shares of
the Funds that such Independent Fiduciary or Directing Participant has
received copies of the documents described in paragraph (h)(1) of this
Section II.
(4) With respect to a Title I Plan that does not permit
participant-directed investments as contemplated under section 404(c)
of the Act, written acknowledgement of the receipt of such documents is
provided by the Independent Fiduciary (i.e., the Plan administrator,
trustee, investment manager or named fiduciary, as the recordholder of
shares of the Funds.) Such Independent Fiduciary will be required to
represent in writing to Wells Fargo that such fiduciary is--
(A) Independent of Wells Fargo and its affiliates;
(B) Capable of making independent decisions regarding the
investment of Plan assets;
(C) Knowledgeable with respect to the Plan in administrative
matters and funding matters related thereto; and
(D) Able to make an informed decision concerning participation in
the Portfolio Advisor Program.
(5) With respect to a Section 404(c) Plan or a Plan that is covered
under Title II of the Act, the Directing Participant or the Independent
Fiduciary is required to acknowledge, in writing, receipt of such
documents and represent to Wells Fargo that such individual is--
(A) Independent of Wells Fargo and its affiliates;
(B) Knowledgeable with respect to the Plan in administrative
matters and funding matters related thereto; and,
(C) Able to make an informed decision concerning participation in
the Portfolio Advisor Program.
(i) Subsequent to its participation in the Portfolio Advisor
Program, each Independent Fiduciary receives the following written or
oral disclosures from Wells Fargo with respect to ongoing participation
in the Portfolio Advisor Program:
(1) Written confirmations of each purchase or redemption
transaction involving shares of an Affiliated Fund
[[Page 7277]]
or a Third Party Fund (including transactions resulting from the
realignment of assets caused by a change in the Allocation Model's
investment mix and from periodic rebalancing of Account assets).
(2) Telephone quotations of such Independent Fiduciary's Plan
Account balance.
(3) A periodic, but not less frequently than quarterly, statement
of Account specifying the net asset value of the Plan's assets in such
Account, a summary of purchase, sale and exchange activity and
dividends received or reinvested and a summary of cumulative realized
gains and/or losses.
(4) Semiannual and annual reports that include financial statements
for the Affiliated Funds and the Third Party Funds as well as the fees
paid to Wells Fargo and its affiliates.
(5) A quarterly newsletter or other report pertaining to the
applicable Allocation Model which describes the Allocation Model's
performance during the preceding quarter, market conditions and
economic outlook and, if applicable, prospective changes in Affiliated
Fund and Third Party Fund allocations for the Allocation Model and the
reasons therefor.
(6) At least annually, a written or oral inquiry from Wells Fargo
to ascertain whether the information provided on the Questionnaire is
still accurate and to determine if such information should be updated.
(7) At least annually, a termination form (the Termination Form) as
described below in Section II(l) and (m).
(j) In the case of a Section 404(c) Plan, the Independent Fiduciary
will decide whether the information described in
Section II(i) above is to be distributed by Wells Fargo to the
Directing Participants of such Plan or whether the Independent
Fiduciary will receive this information and then provide it to the
Directing Participants.
(k) If authorized in writing by the Independent Fiduciary or
Directing Participant, the Plan is automatically rebalanced on a
periodic basis by Wells Fargo to the Allocation Model previously
prescribed by the Independent Fiduciary or Directing Participant, if
one or more Fund allocations deviates from the Allocation Model
prescribed by the Independent Fiduciary or Directing Participant.
(l) In rebalancing a Plan,
(1) Wells Fargo is bound by the Allocation Model and is limited in
the degree of change that it can make to an Allocation Model's
investment mix.
(2) Wells Fargo is authorized to make changes in the mix of asset
classes in a Plan Account within a range of 0-15 percent (plus or
minus) for Stock and Bond Fund investments and within a range of 0-30
percent (plus or minus) for Money Market Fund investments without
obtaining the prior written approval of the Independent Fiduciary or
Directing Participant.
(3) Wells Fargo may not change the asset mix outside the authorized
limits unless it provides the Independent Fiduciary or Directing
Participant with 30 days' advance written notice of the proposed change
and gives the Independent Fiduciary or Directing Participant time to
elect not to have the change made.
(4) Wells Fargo may not divide a Fund sub-class unless it provides
30 days' advance written notice to the Independent Fiduciary or
Directing Participant of the proposed change and gives such individual
the opportunity to object to the change.
(5) Wells Fargo may not replace a Third Party Fund with an
Affiliated Fund.
(m) Although an Independent Fiduciary or Directing Participant may
withdraw from the Portfolio Advisor Program at any time, Wells Fargo
will provide such Independent Fiduciary or Directing Participant with
the Termination Form, at least annually, but in all cases where Wells
Fargo changes the asset mix outside of the current Allocation Model,
when a Fund sub-class is to be divided, when Wells Fargo determines
that it is in the best interest of the Plan or to use a Third Party
Fund instead of an Affiliated Fund and whenever the Outside Fee is
increased. Wells Fargo will provide such written notice to the
Independent Fiduciary or Directing Participant at least 30 days prior
to the implementation of the change.
(n) The instructions for the Termination Form must--
(1) State that the authorization is terminable at will by the
Independent Fiduciary or Directing Participant, without penalty to
such, upon receipt by Wells Fargo of written notice from the
Independent Fiduciary or Directing Participant; and
(2) Explain that any of the proposed changes noted above in
paragraph (m) of this Section, will go into effect if the Independent
Fiduciary or Directing Participant does not elect to withdraw by the
effective date.
(o) Wells Fargo maintains, for a period of six years, the records
necessary to enable the persons described in paragraph (p) of this
Section II to determine whether the conditions of this exemption have
been met, except that--
(1) A prohibited transaction will not be considered to have
occurred if, due to circumstances beyond the control of Wells Fargo
and/or its affiliates, the records are lost or destroyed prior to the
end of the six year period; and
(2) No party in interest other than Wells Fargo shall be subject to
the civil penalty that may be assessed under section 502(i) of the Act,
or to the taxes imposed by section 4975(a) and (b) of the Code, if the
records are not maintained, or are not available for examination as
required by paragraph (p) of this Section II below.
(p)(1) Except as provided in section (p)(2) of this paragraph and
notwithstanding any provisions of subsections (a)(2) and (b) of section
504 of the Act, the records referred to in paragraph (o) of this
Section II are unconditionally available at their customary location
during normal business hours by:
(A) Any duly authorized employee or representative of the
Department, the Internal Revenue Service or the Securities and Exchange
Commission;
(B) Any fiduciary of a participating Plan or any duly authorized
representative of such fiduciary;
(C) Any contributing employer to any participating Plan or any duly
authorized employee representative of such employer; and
(D) Any participant or beneficiary of any participating Plan, or
any duly authorized representative of such participant or beneficiary.
(p)(2) None of the persons described above in paragraphs (p)(1)(B)-
(p)(1)(D) of this paragraph (p) are authorized to examine the trade
secrets of Wells Fargo or commercial or financial information which is
privileged or confidential.
Section III. Definitions
For purposes of this exemption:
(a) The term ``Wells Fargo'' means Wells Fargo Bank, N.A. and any
affiliate of Wells Fargo, as defined in paragraph (b) of this Section
III.
(b) An ``affiliate'' of Wells Fargo includes----
(1) Any person directly or indirectly through one or more
intermediaries, controlling, controlled by, or under common control
with Wells Fargo.
(2) Any officer, director or partner in such person, and
(3) Any corporation or partnership of which such person is an
officer, director or a 5 percent partner or owner.
(c) The term ``control'' means the power to exercise a controlling
influence over the management or policies of a person other than an
individual.
(d) The term ``Plan or Plans'' include Keogh plans (Keogh Plans),
cash or
[[Page 7278]]
deferred compensation plans (e.g., Plans qualified under section 401(k)
of the Code), profit sharing plans, pension and stock bonus plans,
individual retirement accounts (IRAs), salary reduction simplified
employee pension plans (SARSEPs), simplified employee pension plans
(SEP-IRAs), custodial account plans as described in section 403(b) of
the Code (Section 403(b) Plans), savings incentive match plans for
employees (SIMPLEs), and, in the case of a Section 404(c) Plan, the
individual account of a Directing Participant.
(e) The term ``Independent Fiduciary'' means a Plan fiduciary which
is independent of Wells Fargo and its affiliates and is either----
(1) A Plan administrator, trustee, investment manager or named
fiduciary, as the recordholder of shares of the Funds of a Section
404(c) Plan;
(2) An individual covered by a Keogh Plan which invests in shares
of the Funds;
(3) An individual covered under a self-directed IRA, SEP-IRA or
SARSEP, SIMPLE or Section 403(b) Plan which invests in shares of the
Funds;
(4) An employee, officer or director of Wells Fargo and/or its
affiliates covered by an IRA, a SEP-IRA or a SARSEP not subject to
Title I of the Act; or
(5) A Plan administrator, trustee, investment manager or named
fiduciary responsible for investment decisions in the case of a Title I
Plan that does not permit individual direction as contemplated by
Section 404(c) of the Act.
(f) The term ``Directing Participant'' is a participant in a Plan,
such as a Section 404(c) Plan, who is permitted under the terms of the
Plan to direct, and who elects to so direct the investment of the
assets of his or her account in such Plan.
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 (the Notice) on December 3, 1996 at 61
FR 64150.
Written Comments
The Department received one written comment with respect to the
Notice. The comment was submitted by Wells Fargo and is intended to
clarify the Notice in the following areas:
(1) Inclusion of Master and Prototype Plans in the Portfolio
Advisor Program. Section II(a) of the General Conditions states, in
part, that no Plan investing in the Portfolio Advisor Program may be
sponsored or maintained by Wells Fargo and/or its affiliates. Wells
Fargo wishes to clarify that this exclusion does not preclude the
participation in the Portfolio Advisor Program by a master or prototype
Plan sponsored by Wells Fargo and/or its affiliates. Rather, Wells
Fargo points out that the exclusion is limited to Plans sponsored by
Wells Fargo and its affiliates with respect to their own employees.
(2) Substitution of Term ``Wells Fargo Representative'' for ``Wells
Fargo Personal Financial Officer.'' Section II(H)(2)(B) of the General
Conditions states that a Wells Fargo Personal Financial Officer (the
Personal Financial Officer) will provide an explanation of the services
offered under the Portfolio Advisor Program, including the operation
and objectives of the Funds to an Independent Fiduciary or the
Directing Participant of a Section 404(c) Plan, upon request. Wells
Fargo requests that the term ``Personal Financial Officer'' be deleted
and that the term ``Wells Fargo Representative'' be substituted for
that term because the title ``Personal Financial Officer'' has been
changed. In addition, Wells Fargo requests that the term ``Wells Fargo
Representative'' be substituted throughout the Notice, particularly at
pages 64155 and 64157.
(3) Distribution of the Termination Form. Section II(m) of the
General Conditions requires, in part, that Wells Fargo provide an
Independent Fiduciary or a Directing Participant with a Termination
Form, at least annually, during the first quarter of each calendar
year. Wells Fargo requests that this condition be revised to require
annual distribution of the Termination Form without any requirement
that the Termination Form be delivered during the first calendar
quarter of each year. Wells Fargo states that the condition would then
be consistent with Representation 27 of the Notice which contains no
reference to distribution of the Termination Form within the first
quarter of each calendar year.
(4) Definition of the Term ``Plan or Plans.'' Section III(d) of the
Definitions covers the types of Plans that may invest in the Portfolio
Advisor Program. Wells Fargo requests that the term include Section
403(b) Plans as well as SIMPLEs. In addition, Wells Fargo wishes to
clarify that the term ``cash or deferred compensation plans'' includes
Plans qualified under Section 401(k) of the Code.
(5) Acronym for Wells Fargo Institutional Trust Company N.A.
(WFITC). In Representations 3 and 7 of the Summary of Facts and
Representations of the Notice, Wells Fargo notes that the letters ``I''
and ``T'' of the acronym ``WFITC'' have been transposed and should read
``WFITC'' instead of ``WFTIC.''
(6) Description of the Portfolio Advisor Program. The first
sentence of Footnote 9 of the Summary of Facts and Representations of
the Notice states that for any Allocation Model, not more than 30
percent of an investor's assets can be placed in the Money Market
Funds. Wells Fargo points out that this sentence is only applicable to
the sample Allocation Model shown in Table 4 of the Notice but it is
inapplicable to other Allocation Models which may hold more than 30
percent of their assets in Money Market Funds. Accordingly, Wells Fargo
requests that this sentence be deleted and states that the remaining
text is accurate.
Thus, after giving full consideration to the entire record,
including the written comment, the Department has made the
aforementioned changes to the Notice. In addition, the Department has
decided to grant the exemption subject to the modifications or
clarifications described above. The comment letter has been included as
part of the public record of the exemption application. The complete
application file, as well as all supplemental submissions received by
the Department, is made available for public inspection in the Public
Documents Room of the Pension and Welfare Benefits Administration, Room
N-5638, U.S. Department of Labor, 200 Constitution Avenue, N.W.,
Washington, D.C. 20210.
FOR FURTHER INFORMATION CONTACT: Ms. Jan D. Broady of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
GE Capital Investment Advisors, Inc. Located in New York, New York
[Prohibited Transaction Exemption 97-13; Exemption Application No. D-
10318]
Exemption
GE Capital Investment Advisors, Inc. (GECIA) and GECIA Holdings,
Inc. (Holdings) shall not be precluded from functioning as a
``qualified professional asset manager'' pursuant to Prohibited
Transaction Class Exemption 84-14 (PTE 84-14, 49 FR 9494, March 13,
1984) solely because of a failure to satisfy section I(g) of PTE 84-14,
as a result of General Electric Company's ownership interest in them,
including any of their subsidiaries or successors which provides
investment advisory, management or related services and is registered
under the Securities and Exchange Act of 1934, as amended, or the
Investment Advisors Act of 1940, as amended; provided the following
conditions are satisfied:
(A) This exemption is not applicable to any affiliation by GECIA or
Holdings with any person or entity convicted of
[[Page 7279]]
any of the felonies described in part I(g) of PTE 84-14, other than
General Electric Company; and
(B) This exemption is not applicable with respect to any
convictions of General Electric Company for felonies described in part
I(g) of PTE 84-14 other than those involved in the G.E. Felonies,
described in the Notice of Proposed Exemption.
For a more complete statement of the facts and representations
supporting this exemption, refer to the notice of proposed exemption
published on November 25, 1996 at 61 FR 59912.
EFFECTIVE DATE: This exemption is effective as of January 29, 1996.
FOR FURTHER INFORMATION CONTACT: Mr. Ronald Willett of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
Givens 401(k) Savings and Retirement Plan (the Plan) Located in
Chesapeake, VA
[Prohibited Transaction Exemption 97-14; Exemption Application No. D-
10364]
Exemption
The restrictions of sections 406(a), 406(b)(1) and (b)(2) of the
Act and the sanctions resulting from the application of section 4975 of
the Code, by reason of section 4975(c)(1)(A) through (E) of the Code,
shall not apply to the purchase from the Plan of the Plan's interest in
a group annuity contract (the GAC Interest) by Givens, Incorporated, a
sponsor of the Plan; provided the following conditions are satisfied:
(a) The sale is a one-time transaction for cash;
(b) The Plan suffers no loss nor incurs any expense in connection
with the sale; and
(c) The Plan receives a purchase price of no less than the fair
market value of the GAC Interest as of the date of the sale.
For a more complete statement of the facts and representations
supporting this exemption, refer to the notice of proposed exemption
published on December 17, 1996 at 61 FR 66331.
FOR FURTHER INFORMATION CONTACT: Mr. Ronald Willett of the Department,
telephone (202) 219-8881. (This is not a toll-free number.)
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 to which the exemptions 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) These exemptions are supplemental to and not in derogation of,
any other provisions of the Act and/or the Code, including statutory or
administrative exemptions and transactional 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
(3) The availability of these exemptions is subject to the express
condition that the material facts and representations contained in each
application are true and complete and accurately describe all material
terms of the transaction which is the subject of the exemption. In the
case of continuing exemption transactions, if any of the material facts
or representations described in the application change after the
exemption is granted, the exemption will cease to apply as of the date
of such change. In the event of any such change, application for a new
exemption may be made to the Department.
Signed at Washington, D.C., this 12th day of February, 1997.
Ivan Strasfeld,
Director of Exemption Determinations, Pension and Welfare Benefits
Administration, U.S. Department of Labor.
[FR Doc. 97-3838 Filed 2-14-97; 8:45 am]
BILLING CODE 4510-29-P
