Notice2026-00796

Agency Information Collection Activities; Submission for OMB Review; Comment Request; Prohibited Transaction Class Exemption for Certain Transactions Between Investment Companies and Employee Benefit Plans (PTE 1977-4)

Primary source

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Published
January 16, 2026

Issuing agencies

Labor Department

Abstract

The Department of Labor (DOL) is submitting this Employee Benefits Security Administration (EBSA)-sponsored information collection request (ICR) to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995 (PRA). Public comments on the ICR are invited.

Full Text

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<title>Federal Register, Volume 91 Issue 11 (Friday, January 16, 2026)</title>
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[Federal Register Volume 91, Number 11 (Friday, January 16, 2026)]
[Notices]
[Pages 2155-2156]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-00796]


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DEPARTMENT OF LABOR


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Prohibited Transaction Class Exemption for 
Certain Transactions Between Investment Companies and Employee Benefit 
Plans (PTE 1977-4)

ACTION: Notice of availability; request for comments.

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SUMMARY: The Department of Labor (DOL) is submitting this Employee 
Benefits Security Administration (EBSA)-sponsored information 
collection request (ICR) to the Office of Management and Budget (OMB) 
for review and approval in accordance with the Paperwork Reduction Act 
of 1995 (PRA). Public comments on the ICR are invited.

DATES: The OMB will consider all written comments that the agency 
receives on or before February 17, 2026.

ADDRESSES: Written comments and recommendations for the proposed 
information collection should be sent within 30 days of publication of 
this notice to <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular 
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.

FOR FURTHER INFORMATION CONTACT: Michael Howell by telephone at 202-
693-6782, or by email at <a href="/cdn-cgi/l/email-protection#7e3a3132212e2c3f212e2b3c32373d3e1a111250191108"><span class="__cf_email__" data-cfemail="24606b687b7476657b747166686d6764404b480a434b52">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: PTE 77-4, which was originally granted on 
April 8, 1977, exempts from the prohibited transaction restrictions the 
purchase and sale by an employee benefit plan of shares from a 
registered, open-end investment company (mutual fund) when a fiduciary 
of the plan (e.g., an investment manager) is also the investment 
advisor for the investment company.
    There are three disclosure requirements incorporated within the 
class exemption. The first requirement is intended to put the plan on 
notice of possible fees associated with the redemption of open-end 
mutual fund shares. It requires disclosure of any redemption fees in 
the current prospectus of the open-end mutual fund (the prospectus in 
effect at the time of the plan's acquisition or disposal of such 
shares). The class exemption permits a plan to pay a redemption fee on 
the sale, by redemption, of open-end mutual fund shares only if the fee 
is paid to the open-end mutual company and the above noted disclosure 
is made.
    The second requirement is that, at the time of the purchase or sale 
of such mutual fund shares, an independent fiduciary receive a copy of 
the current prospectus issued by the open-end mutual fund and full 
written disclosure of the investment advisory fees charged to or paid 
by the plan and the open-end mutual fund to the investment advisor. 
Pursuant to advisory opinion 2013-04A, the Department interprets the 
term ``prospectus'' in PTE 77-4 to include a ``summary prospectus'' if 
the summary prospectus meets the requirements of the Securities and 
Exchange Commission's revised disclosure provisions for mutual funds 
including a summary prospectus rule that were published in 2009 
Pursuant to the SEC's revised disclosure provisions, mutual funds also 
are required to send the full

[[Page 2156]]

prospectus to the investor upon an investor's request, and to provide 
the full prospectus on-line at a specified internet site.
    The third requirement is that the independent fiduciary be notified 
of any changes in the fees and approves in writing the plan's purchase 
or sale of affected mutual fund shares, or the plan's continued 
possession of any such mutual fund shares that it had acquired before 
the fee changes. For additional substantive information about this ICR, 
see the related notice published in the Federal Register on July 11, 
2025 (90 FR 30984).
    Comments are invited on: (1) whether the collection of information 
is necessary for the proper performance of the functions of the 
Department, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimates of the burden and 
cost of the collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility and clarity of the information collection; and (4) ways to 
minimize the burden of the collection of information on those who are 
to respond, including the use of automated collection techniques or 
other forms of information technology.
    This information collection is subject to the PRA. A Federal agency 
generally cannot conduct or sponsor a collection of information, and 
the public is generally not required to respond to an information 
collection, unless the OMB approves it and displays a currently valid 
OMB Control Number. In addition, notwithstanding any other provisions 
of law, no person shall generally be subject to penalty for failing to 
comply with a collection of information that does not display a valid 
OMB Control Number. See 5 CFR 1320.5(a) and 1320.6.
    DOL seeks PRA authorization for this information collection for 
three (3) years. OMB authorization for an ICR cannot be for more than 
three (3) years without renewal. The DOL notes that information 
collection requirements submitted to the OMB for existing ICRs receive 
a month-to-month extension while they undergo review.
    Agency: DOL-EBSA.
    Title of Collection: Prohibited Transaction Class Exemption for 
Certain Transactions Between Investment Companies and Employee Benefit 
Plans (PTE 1977-4).
    OMB Control Number: 1210-0049.
    Affected Public: Private sector.
    Total Estimated Number of Respondents: 785.
    Total Estimated Number of Responses: 319,848.
    Total Estimated Annual Time Burden: 27,046 hours.
    Total Estimated Annual Other Costs Burden: $0.

(Authority: 44 U.S.C. 3507(a)(1)(D))

Michael Howell,
Senior Paperwork Reduction Act Analyst.
[FR Doc. 2026-00796 Filed 1-15-26; 8:45 am]
BILLING CODE 4510-29-P


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Indexed from Federal Register on January 16, 2026.

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