Notice2026-03825
Proposed Exemption From Certain Prohibited Transaction Restrictions for Certain Asset Managers Related to UBS AG (UBS) Located in Zurich, Switzerland
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 26, 2026
Effective
May 5, 2026
Issuing agencies
Labor DepartmentEmployee Benefits Security Administration
Abstract
If granted, this proposed exemption would allow certain current and future UBS-related asset managers to rely on Prohibited Transaction Exemption (PTE) 84-14 until May 4, 2031, if certain conditions are met, notwithstanding four judgments of conviction and one non-prosecution agreement involving entities within UBS' corporate umbrella.
Full Text
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<title>Federal Register, Volume 91 Issue 38 (Thursday, February 26, 2026)</title>
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[Federal Register Volume 91, Number 38 (Thursday, February 26, 2026)]
[Notices]
[Pages 9645-9656]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03825]
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
[Exemption Application No. D-12118]
Proposed Exemption From Certain Prohibited Transaction
Restrictions for Certain Asset Managers Related to UBS AG (UBS) Located
in Zurich, Switzerland
AGENCY: Employee Benefits Security Administration, Department of Labor.
ACTION: Notice of proposed exemption.
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SUMMARY: If granted, this proposed exemption would allow certain
current and future UBS-related asset managers to rely on Prohibited
Transaction Exemption (PTE) 84-14 until May 4, 2031, if certain
conditions are met, notwithstanding four judgments of conviction and
one non-prosecution agreement involving entities within UBS' corporate
umbrella.
DATES: If granted, this proposed exemption will be in effect for the
period beginning on May 5, 2026, and ending on May 4, 2031.
Comments due: Written comments and requests for a public hearing on
the proposed exemption must be received by the Department by April 6,
2026.
ADDRESSES: All written comments and requests for a hearing should be
sent to the Employee Benefits Security Administration (EBSA), Office of
Exemption Determinations, Attention: Application No. D-12118:
<bullet> via email to <a href="/cdn-cgi/l/email-protection#8beea6c4cecfcbefe4e7a5ece4fd"><span class="__cf_email__" data-cfemail="c1a4ec8e848581a5aeadefa6aeb7">[email protected]</span></a>; or
<bullet> online through <a href="http://www.regulations.gov">http://www.regulations.gov</a>. Follow the
``Submit a comment'' instructions.
Any such comments or requests should be sent by the end of the
scheduled comment period. The application for exemption and the
comments received will be available for public inspection in the Public
Disclosure Room of the Employee Benefits Security Administration, U.S.
Department of Labor, Room N-1515, 200 Constitution Avenue NW,
Washington, DC 20210 ((202) 693-8673). See SUPPLEMENTARY INFORMATION
below for additional information regarding comments.
FOR FURTHER INFORMATION CONTACT: Nicholas Schroth of the Department at
(202) 693-8571. (This is not a toll-free number.)
SUPPLEMENTARY INFORMATION:
Comments
Persons are encouraged to submit all comments electronically and to
not follow with paper copies. Comments should state the nature of the
person's interest in the proposed exemption and the manner in which the
person would be materially affected by the exemption, if granted. Any
person who may be materially affected by an exemption can request that
the Department hold a hearing on the exemption. A request for a hearing
must state: (1) the name, address, telephone number, and email address
of the person making the request; (2) the nature of the person's
interest in the exemption and the manner in which the person would be
materially affected by the exemption; and (3) a statement of the issues
to be addressed and a general description of the evidence to be
presented at the hearing. The Department will grant a request for a
hearing made in accordance with the requirements above where a hearing
is necessary to fully explore material factual issues identified by the
person requesting the hearing. A notice of such hearing shall be
published by the Department in the Federal Register. The Department may
decline to hold a hearing if: (1) the request for the hearing does not
meet the requirements above; (2) the only issues identified for
exploration at the hearing are matters of law; or (3) the factual
issues identified can be fully explored through the submission of
evidence in written (including electronic) form.
Warning: The Department will include all comments received in the
public record without change and will make them available online at
<a href="https://www.regulations.gov">https://www.regulations.gov</a>. The Department notes that it will include
any personal information provided in the public record and online,
unless the commenter claims that any of the information included is
confidential, or the disclosure of such information is restricted by
statute. If you submit a comment, EBSA recommends that you include your
name and other contact information in the body of your comment, but DO
NOT submit information that you consider to be confidential, otherwise
protected (such as a Social Security number or an unlisted phone
number) or confidential business information that you do not want
publicly disclosed. If EBSA cannot read your comment due to technical
difficulties and cannot contact you for clarification, EBSA might not
be able to consider your comment.
Additionally, the <a href="https://www.regulations.gov">https://www.regulations.gov</a> website is an
``anonymous access'' system, which means EBSA will not know your
identity or contact information unless you provide them in the body of
your comment. If you send an email directly to EBSA without going
through <a href="https://www.regulations.gov">https://www.regulations.gov</a>, your email address will be
automatically captured and included as part of the comment that is
placed in the public record and made available on the internet.
Background
1. The rules set forth in ERISA section 406 and Code section
4975(c)(1) proscribe certain ``prohibited transactions'' between plans
and related parties with respect to those plans. Under ERISA section
3(14), such parties are known as ``parties in interest,'' and include,
among others, the plan fiduciary, a sponsoring employer of the plan,
service providers to the plan, and certain of their affiliates.\1\
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\1\ Under the Code, such parties, or similar parties, are
referred to as ``disqualified persons.''
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2. The prohibited transaction provisions under ERISA section 406(a)
and Code section 4975(c)(1) prohibit, in part, sales, leases, loans or
the provision of services between a party in interest and a plan (or an
entity whose assets are deemed to constitute the assets of a plan), as
well as the use of plan assets by or for the benefit of a party in
interest or a transfer of plan assets to a party in
[[Page 9646]]
interest.\2\ Under ERISA section 408(a) and Code section 4975(c)(2),
the Department has the authority to grant exemptions from such
``prohibited transactions'' in accordance with its exemption procedures
if the Department finds that an exemption is: (1) administratively
feasible for the Department; (2) in the interests of the plan and of
its participants and beneficiaries; and (3) protective of the rights of
participants and beneficiaries.\3\
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\2\ The prohibited transaction provisions also include certain
fiduciary prohibited transactions under ERISA section 406(b) and
Code section 4975(c)(1)(E) and (F). These include transactions
involving fiduciary self-dealing, fiduciary conflicts of interest,
and kickbacks to fiduciaries. PTE 84-14 provides only very narrow
conditional relief for transactions described in ERISA section
406(b).
\3\ 29 CFR part 2570, subpart B at 89 FR 4662, January 24, 2024.
Effective December 31, 1978, section 102 of Reorganization Plan No.
4 of 1978, 5 U.S.C. App. 1 (1996), transferred the authority of the
Secretary of the Treasury to issue exemptions of the type requested
by the Applicant to the Secretary of Labor. Therefore, this notice
of proposed exemption is issued solely by the Department.
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3. PTE 84-14 is a class exemption that reflects the Department's
conclusion that it could provide broad relief from the prohibited
transaction provisions of ERISA section 406(a) and Code section
4975(c)(1) only if the commitments and the investments of plan assets
and the negotiations leading thereto are the sole responsibility of an
independent discretionary manager that meets the exemption's
conditions. This manager is referred to as a ``qualified professional
asset manager'' (a QPAM, as defined further below).
4. Section I(g) of PTE 84-14 precludes relief under the exemption
if the QPAM, an ``affiliate'' thereof,\4\ or any direct or indirect
five percent or more owner of the QPAM, within 10 years immediately
preceding the transaction: (1) has been convicted or released from
imprisonment, whichever is later, as a result of criminal activity
described in section I(g); or (2) has engaged in prohibited misconduct
as described in that section (in both cases subject to the
Ineligibility Date described in section I(h) of PTE 84-14).\5\
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\4\ Section VI(d) of PTE 84-14 defines the term ``affiliate''
for purposes of Section I(g) as ``(1) Any person directly or
indirectly through one or more intermediaries, Controlling,
Controlled by, or under Common Control with the person; (2) Any
director of, Relative of, or partner in, any such person, (3) Any
corporation, partnership, trust or unincorporated enterprise of
which such person is an officer, director, or a five percent or more
partner or owner; and (4) Any employee or officer of the person
who--(A) Is a highly compensated employee (as defined in Code
section 4975(e)(2)(H) or officer (earning ten (10) percent or more
of the yearly wages of such person); or (B) Has direct or indirect
authority, responsibility, or control regarding the custody,
management or disposition of Plan assets.''
\5\ The prohibited misconduct provision became effective on June
17, 2024.
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5. The Department's inclusion of section I(g) in PTE 84-14 is
based, in part, on an expectation that QPAMs will maintain a high
standard of integrity. This expectation extends not only to the QPAM
itself but also to those who may be in a position to influence the
policies of the QPAM.
6. Currently, only one UBS-affiliated entity relies on PTE 84-14:
UBS Asset Management (Americas) LLC. However, in the future, certain
other entities that are either affiliated with UBS (hereinafter, the
Affiliated QPAMs, as defined further below) or otherwise related to UBS
(hereinafter, the Related QPAMs, as defined further below) may seek to
rely on PTE 84-14. This proposed exemption, if granted, would enable
all of those entities (collectively, the UBS QPAMs) to continue to rely
on PTE 84-14 until May 4, 2031, if the conditions of the exemption are
met. The proposed exemption would provide relief solely from
restrictions set forth in ERISA sections 406 and 407,\6\ but not from
any other law.
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\6\ Unless otherwise specified, references to specific
provisions of Title I of ERISA also refer to the corresponding
provisions of Code section 4975.
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Summary of Facts and Representations <SUP>7</SUP>
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\7\ The Summary of Facts and Representations is based on UBS's
representations and does not reflect factual findings or opinions of
the Department unless indicated otherwise. The Department notes that
availability of this exemption is subject to the express condition
that the material facts and representations made by UBS are true,
complete, and accurately describe all material terms of the
transaction(s) covered by the exemption. If there is any material
change in a transaction covered by the exemption, or in a material
fact or representation that is part of the record attributable to D-
12118, the exemption will cease to apply as of the date of the
change. Additionally, UBS confirmed that the material facts and
representations it provided to the Department in connection with 89
FR 49213 and 90 FR 3929 are still true and accurate, as corrected by
the Applicant's comments in 89 FR 49213 and as supplemented by the
application for this exemption.
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7. UBS is a Swiss-based global financial services company. Over the
years, certain entities within UBS' corporate umbrella engaged in
misconduct that disqualified the UBS QPAMs from relying on PTE 84-14,
pursuant to Section I(g) of PTE 84-14. The disqualifying events
relevant to this proposed exemption are: \8\
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\8\ Other UBS-related convictions that were the subject of prior
individual exemptions include: (1) in 2013, UBS Securities Japan Co.
Ltd. pled guilty to the fraudulent submission of Yen London
Interbank Offer Rate rates between 2006 and 2009, and participation
in a scheme to defraud counterparties to interest rate derivatives
trades, by secretly manipulating certain benchmark interest rates to
which the profitability of those trades was tied; and (2) in 2014,
CSAG was convicted in the District Court for the Eastern District of
Virginia in Case Number 1:14-cr-188-RBS, for one count of conspiracy
to violate section 7206(2) of the Internal Revenue Code in violation
of Title 18, United States Code, Section 371. These convictions,
occurring more than 10 years ago, no longer cause the UBS QPAMs to
violate Section I(g) of PTE 84-14.
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(a) In 2017, U.S. District Court for the District of Connecticut
convicted UBS for a scheme to defraud counterparties to interest rate
derivatives transactions, by secretly manipulating benchmark interest
rates to which the profitability of those transactions was tied (the
2017 Conviction).
(b) In 2019, a Paris criminal court convicted UBS and UBS Europe SE
for illegally soliciting clients from 2004 to 2012 and laundering the
proceeds of tax fraud from 2004 to 2012 (the 2019 UBS Europe
Conviction).\9\
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\9\ UBS Europe SE is the successor to UBS (France) S.A., which
merged into UBS Europe SE in 2023 and set up a branch in France
called UBS Europe SE, France Branch.
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(c) In 2022, the District Court for the Eastern District of New
York entered a judgment of conviction against Credit Suisse Securities
(Europe) Limited (CSSEL) \10\ for one count of conspiracy to commit
wire fraud in violation of 18 U.S.C. 1349 (the 2022 CSSEL Conviction).
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\10\ On June 12, 2023, UBS acquired Credit Suisse AG, another
Swiss-based global financial services firm. This acquisition brought
Credit Suisse subsidiaries, including CSSEL, under the UBS corporate
umbrella.
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(d) On May 5, 2025, Credit Suisse Services AG (CSSAG) entered a
guilty plea in the District Court for the Eastern District of Virginia
for one count of conspiracy to commit offenses against the United
States, in violation of Title 26, United States Code, section 7206(2),
for the aiding, assisting, procuring, counseling, and advising of the
preparation and presentation of false income tax returns to the
Internal Revenue Service (the IRS), in violation of 18 U.S.C., section
371 (the 2025 CSSAG Conviction).
(e) On May 5, 2025, CSSAG entered into a contemporaneous Non-
Prosecution Agreement relating to its Credit Suisse Singapore location
for assisting U.S. taxpayers in failing to comply with tax obligations
or in using their accounts to evade U.S. taxes and U.S. reporting
requirements (the 2025 NPA).
8. Following disqualifying events (a)-(c), UBS QPAMs applied for,
and received, temporary exemptive relief (and extensions of that
relief) which allowed the UBS QPAMs to continue to rely on the
exemptive relief in PTE 84-14.\11\ The Department issued these
[[Page 9647]]
exemptions in order to protect Covered Plans from the costs and harms
that could arise if the UBS QPAMs lost their ability to engage in
beneficial transactions on behalf of Covered Plans due to
disqualification under Section I(g). The conditions of the exemptions
were carefully constructed to, among other things, protect Covered
Plans from the UBS-related misconduct that gave rise to the
disqualifying events.
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\11\ See PTE 2022-01 (87 FR 1186 (Jan. 10, 2022)); PTE 2025-03
(90 FR 3929 (Jan. 15, 2025)); PTE 2023-14 (88 FR 36337 (June 2,
2023)); PTE 2020-01 (85 FR 8020 (Feb. 12, 2020)); PTE 2019-01 (84 FR
6163 (Feb. 26, 2019)); PTE 2017-07 (82 FR 61903 (Dec. 29, 2017));
PTE 2016-17 (81 FR 94049 (Dec. 22, 2016)).
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9. The latest individual exemption, PTE 2025-03, became void
following the 2025 CSSAG Conviction and the 2025 NPA. Since then, the
UBS QPAMs have relied on the transitional exemptive relief set forth in
Section I(i) of PTE 84-14, which provides UBS QPAMs a one-year-
transition period of relief from May 5, 2025 to May 4, 2026.
10. UBS represents that the conduct underlying the 2025 CSSAG
Conviction and the conduct underlying the 2025 NPA occurred within
business divisions that are separate from UBS QPAMs and Credit Suisse
Asset Management LLC (CSAM) (the previous Credit Suisse QPAM). UBS
represents that the UBS QPAMs and CSAM were insulated from the business
divisions where the wrongdoing occurred by policies, procedures, and
dedicated personnel. Furthermore: (1) the conduct underlying the 2025
CSSAG Conviction occurred before UBS acquired Credit Suisse; \12\ and
(2) CSAM no longer operates as a QPAM. UBS represents that every
independent audit that has been performed has determined that the UBS
QPAMs met the terms and conditions of each exemption.
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\12\ The merger of UBS AG and Credit Suisse AG was completed in
May 2024 and the transition to a single U.S. intermediate holding
company took place in June 2024.
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Application for the Relief Described in This Proposed Exemption
11. On June 17, 2025, UBS applied to the Department for
administrative exemptive relief so that UBS QPAMs could continue to
rely on PTE 84-14, notwithstanding the disqualifying events described
in (a)-(e) above (collectively, the Criminal Activity). UBS requested a
ten-year exemption with few conditions. UBS generally argued that the
Department should revert to its ``historical approach'' of requiring
fewer conditions because, among other things: the conditions developed
over the past few years are unnecessary to protect plans and their
participants and beneficiaries; the use of the PTE 84-14 does not
involve the real risk of conflicted transactions; the UBS QPAMs have
repeatedly demonstrated their consistent compliance with ERISA; and
none of the historical criminal conduct relates to the UBS QPAMs.
13. The Department disagrees that a ``historical approach'' (i.e.,
with fewer conditions) is appropriate in this instance because UBS is
unique with respect to the number, type, and magnitude of disqualifying
events engaged in by UBS-related entities. ERISA section 408(a)
requires the Department to impose conditions as it deems necessary to
make its findings that an exemption is protective of plans and their
participants and beneficiaries. The Department believes these
conditions, described below, strike an appropriate balance given the
nature, extent, duration and amount of UBS-related corporate
malfeasance, ensuring Covered Plan clients of UBS QPAMs are: able to
avoid the costs of changing investment managers (should they decide to
do so); and fully protected against possible risks caused by the
Criminal Activity.
Harm to Covered Plans in the Absence of QPAM Relief
14. In support of its exemption request, UBS provided the
Department with estimates of the liquidation costs that each type of
portfolio managed by the UBS QPAMs would incur if denied relief. The
estimates assumed that Covered Plan assets would have to be liquidated
because of the unavailability of PTE 84-14 with the following
consequences for Covered Plans.\13\
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\13\ UBS provided a report describing costs that Covered Plan
investors would incur in connection with UBS QPAMs' loss of relief
under PTE 84-14, dated June 17, 2025, by Dr. John Minahan, who UBS
represents is an expert in the field of ERISA plan transitions. The
following paragraphs describe potential losses based on information
provided by UBS, as supplemented by Dr. Minahan.
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15. Unified Global Alternatives (UGA), a business unit within the
UBS QPAM, provides customized portfolios of hedge funds that are run as
plan asset funds. As of May 2025, UGA manages approximately $6.69
billion as part of this business. UBS estimated that these customized
hedge fund portfolios would lose $54.9 million if Covered Plans
liquidated their assets because the UBS QPAMs could not rely upon PTE
84-14. In calculating the estimates of losses in the event these
portfolios were liquidated, UBS assumed that its clients would
immediately request full redemptions and any current illiquid/side
pocket investment would need to be sold in the secondary market at a 30
percent discount.
16. UGA is also a platform manager for two managed accounts with
third party trading advisers. In this role, UGA provides discretionary
or non-discretionary advisory services to pension clients as well as
non-ERISA clients to invest in commingled managed accounts, which are
run as plan asset funds. As of May 2025, UGA manages approximately
$254.6 million as part of this business. If UBS QPAMs are no longer
allowed to rely on PTE 84-14, UBS estimated that the economic loss for
these investors would be $4.3 million. This estimate assumes the entire
portfolio would be liquidated and the Covered Plan clients would pay
the related transaction costs.
17. UBS also estimated the loss to active equity portfolios if UBS
QPAMs were no longer able to rely on PTE 84-14. These equity portfolios
cover large, small and mid-cap equity securities, and pursue a variety
of strategies. Within these portfolios, UBS QPAMs managed approximately
$193 million in assets for ERISA plan clients as of May 2025. UBS
estimated that liquidation costs for these portfolios would amount to
approximately $1.7 million based on a transaction cost model.
18. UBS offers a range of strategies across the global fixed income
asset class spectrum. These strategies trade a variety of products,
such as investment grade and non-investment grade debt securities, U.S.
treasuries, agency and non-agency mortgage-backed securities, and
related derivatives. As of May 2025, UBS QPAMs manage approximately
$1.2 billion in fixed income strategies for ERISA plan clients. UBS
estimates that, if the Department does not grant an exemption, the
liquidation costs to these plans will be approximately $4.2 million. To
calculate these estimates, UBS constructed a bid/offer spread model
based on the individual securities held in each client portfolio. The
model assumes that liquidation will not occur during a time of market
stress, and UBS suggests that the estimates may therefore be low.
19. UBS Investment Solutions is a team within the UBS QPAM that
manages portfolios based on an asset allocation investment process. UBS
Investment Solutions may also employ long/short investment strategies
that purchase securities on margin and/or sell securities short, where
permitted by client guidelines. The UBS QPAM manages approximately
$362.9 million in Investment Solutions strategies for ERISA plan
clients. UBS estimates that, if the Department does not grant an
exemption, liquidation costs for those portfolios will amount to
$139,451.
20. Credit Investments Group (CIG) is another business unit within
UBS Asset Management Americas LLC. As part of its business, CIG manages
an ERISA
[[Page 9648]]
client account with a net asset value of $117.5 million as of May 2025.
In the event of a portfolio liquidation scenario, CIG would typically
initiate what is effectively an auction process for every unique line
item in the portfolio and invite various loan trading desks to bid on
each asset. In this auction process, positions marked below 80 percent
reasonably would be estimated to trade at least 10 percent below the
current mark. Based on this and other assumptions, UBS estimates an
economic loss of $2.1 million.
21. In addition to the liquidation costs described above, UBS also
represents that its Covered Plan clients would incur other harms
associated with losing relief under PTE 84-14, such as (i) Covered
Plans losing UBS, their preferred manager, which has unique market
access to third-party alternatives managers; (ii) the time lost for
plan fiduciaries in the tasks associated with selecting a new manager;
and (iii) the opportunity costs of investments not made during the
transition. Hereinafter, these costs, and any other cost that may be
incurred by a Covered Plan due to a UBS QPAM's loss of relief under PTE
84-14, other than a liquidation cost, are referred to as an additional
cost.
22. Department's Note: Section III(j)(2) of this proposed exemption
is intended, in part, to help protect Covered Plans from liquidation
costs and additional costs, and requires that any arrangement,
agreement, or contract between a UBS QPAM and its Covered Plan clients
include an obligation by the QPAM to indemnify and hold harmless the
Covered Plans from actual losses. This includes the losses and related
costs arising from unwinding transactions with third parties and from
transitioning Covered Plan assets to an alternative asset manager as
well as costs associated with any exposure to excise taxes under Code
Section 4975 as a result of a QPAM's inability to rely upon the relief
in PTE 84-14.
This Proposed Exemption and Summary of Protective Conditions
23. In developing administrative exemptions under ERISA section
408(a), the Department implements its statutory directive to propose
only exemptions that are appropriately protective, and in the interest
of, affected plans and IRAs. The Department is proposing this exemption
to protect Covered Plans from the costs and harms that would arise if
UBS QPAMs were no longer able to rely on the relief provided in PTE 84-
14. The Department is proposing this exemption with conditions that
would protect Covered Plans (and their participants and beneficiaries)
and allow them to continue to benefit from the transactions described
in PTE 84-14.\14\ The terms of this proposed exemption are intended to
promote UBS QPAM adherence to basic fiduciary standards under Title I
of ERISA and the Code and reinforce their obligation to act with a high
degree of integrity on behalf of their Covered Plan clients.
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\14\ The Department notes that this is a summary of the
conditions intended for the convenience of a reader; however, the
governing conditions for the exemptive relief are those reflected in
the operative text in Section III of this proposed exemption.
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24. This exemption would require that UBS QPAMs (including their
officers, directors, agents (with very narrow exceptions), employees of
such QPAMs, and UBS Seconded Employees) \15\ must not have known, have
had reason to know of, nor participated in the criminal conduct that is
the subject of any of the Criminal Activity. Each UBS QPAM (and its
officers, directors, etc.) must meet this condition with respect to
each instance of Criminal Activity regardless of whether the misconduct
occurred within the QPAM's corporate umbrella at the time it occurred.
Further, any other party engaged on behalf of the UBS QPAMs who had
responsibility for or exercised authority in connection with the
management of plan assets must not have known, had reason to know of,
nor participated in the Criminal Activity.
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\15\ This proposed exemption uses the concept of a ``UBS
Seconded Employee'' to describe employees working for both a UBS
QPAM and one or more other UBS entities that have been convicted or
where misconduct occurred, but who in the Department's view may
provide services for the UBS QPAMs under this exemption.
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25. This exemption would require that no UBS QPAM, including their
officers, directors, agents (other than one of the entities subject to
the Criminal Activity), employees of such QPAMs, and UBS Seconded
Employees received direct compensation, or knowingly received indirect
compensation, in connection with the criminal conduct that is the
subject of the Criminal Activity. Further, no other party engaged on
behalf of the UBS QPAMs who had responsibility for, or exercised
authority in connection with the management of plan assets received
direct compensation, or knowingly received indirect compensation, in
connection with the criminal conduct that is the subject of the
Criminal Activity.
26. This exemption would preclude each Affiliated QPAM from
employing or knowingly engaging any of the individuals who participated
in the criminal conduct underlying the Criminal Activity. This means
that no individual who participated in criminal misconduct at UBS, UBS
Europe, CSSEL, or CSSAG (each, a Misconduct Entity) may be employed by
any Affiliated QPAM. A UBS QPAM also must not have exercised authority
over the assets of any ERISA-covered plan or IRA in a manner that it
knew or should have known would: further the criminal conduct
underlying the Criminal Activity; or cause the UBS QPAM or its
affiliates to directly or indirectly profit from the criminal conduct
underlying the Criminal Activity.
27. With narrow exceptions, this exemption would require that no
Affiliated QPAM will use its authority or influence to direct an
``investment fund'' (as defined in Section VI(b) of PTE 84-14) that is
subject to ERISA or the Code and managed by such Affiliated QPAM with
respect to one or more Covered Plans, to enter into any transaction
with a Misconduct Entity or to engage a Misconduct Entity to provide
any service to such investment fund, for a direct or indirect fee borne
by such investment fund, regardless of whether such transaction or
service may otherwise be within the scope of relief provided by an
administrative or statutory exemption. Further, other than with respect
to employee benefit plans maintained or sponsored for its own employees
or the employees of an affiliate, a Misconduct Entity may not act as a
fiduciary within the meaning of ERISA section 3(21)(A)(i) or (iii), or
Code section 4975(e)(3)(A) and (C), with respect to ERISA-covered Plan
and IRA assets.
28. Each Affiliated QPAM must continue to maintain, adjust to the
extent necessary, implement, and follow written policies and procedures
(the Policies) that are reasonably designed to ensure that: (a) the
asset management decisions of the Affiliated QPAM are conducted
independently of each Misconduct Entity's corporate management and
business activities; (b) the Affiliated QPAMs fully comply with ERISA's
fiduciary duties and with ERISA's and the Code's prohibited transaction
provisions; (c) the Affiliated QPAMs do not knowingly participate in
any other person's violation of ERISA or the Code with respect to
Covered Plans; (d) any filings or statements made by the Affiliated
QPAMs to regulators on behalf of, or in relation to, Covered Plans are
materially accurate and complete; (e) the Affiliated QPAMs do not make
material misrepresentations or omit material information in their
communications with such regulators, or in their communications with
Covered Plans; and (f) the Affiliated
[[Page 9649]]
QPAMs comply with the terms of the exemption.
29. This exemption would require each Affiliated QPAM to maintain,
adjust to the extent necessary, and implement a training program (the
Training) that will be conducted at least annually for all relevant
asset/portfolio management, trading, legal, compliance, and internal
audit personnel. The Training must cover, at a minimum, the Policies,
ERISA and Code compliance, ethical conduct, the consequences that would
result from not complying with the proposed exemption conditions, and
the requirement to promptly report wrongdoing.
30. This exemption would require each Affiliated QPAM to continue
to engage an independent auditor annually to evaluate the adequacy of,
and the QPAM's compliance with, the Policies and Training required by
the exemption. The independent auditor must be prudently selected by
the Affiliated QPAM and have appropriate technical training and
proficiency with ERISA and the Code to perform the tasks required by
the exemption. The Affiliated QPAMs must grant the auditor
unconditional access to their business, and the auditor's engagement
must specifically require the auditor to test each Affiliated QPAM's
operational compliance with the Policies and Training.
31. The independent auditor must issue a written audit report (the
Audit Report) annually to UBS and the Affiliated QPAM to which the
audit applies, that describes the procedures performed by the auditor
in connection with its examination. Further, the Affiliated QPAMs must
promptly address any instance of noncompliance identified by the
auditor and must promptly address or prepare a written plan of action
to address any determination as to the adequacy of the Policies and
Training and the auditor's recommendations, if any, with respect to
strengthening the Policies and Training of the respective Affiliated
QPAM. The Audit Report must be provided to the Department annually by
the Affiliated QPAM, and the Department will make the Audit Report part
of the public record once it is received by the Department.
32. This exemption would further require the general counsel, or
one of the three most senior executive officers of the Affiliated QPAM
to which the Audit Report applies, to certify in writing and under
penalty of perjury that the officer has reviewed the Audit Report and
the exemption, and the Affiliated QPAM has addressed, corrected, and
remedied (or has an appropriate written plan to address) any identified
instance of noncompliance or inadequacy regarding the Policies and
Training identified in the Audit Report.
33. With respect to any arrangement, agreement, or contract between
an Affiliated QPAM and a Covered Plan, this proposal requires each
Affiliated QPAM to agree and warrant: (a) to comply with ERISA and the
Code, including the standards of prudence and loyalty set forth in
ERISA section 404; (b) to refrain from engaging in prohibited
transactions that are not otherwise exempt; (c) to indemnify and hold
harmless the Covered Plan for any actual losses resulting directly
from, among other things, the Affiliated QPAM's violation of the
conditions for this exemption, prohibited transactions, and ERISA's
fiduciary duties; (d) with narrow exceptions, to not restrict the
ability of such Covered Plan to terminate or withdraw from its
arrangement with the Affiliated QPAM with respect to any investment in
a separately managed account or pooled fund subject to ERISA and
managed by such QPAM; (e) with narrow exceptions, to not impose any
fees, penalties, or charges for such termination or withdrawal; and (f)
to not include exculpatory provisions disclaiming or otherwise limiting
the liability of the Affiliated QPAM for a violation of such
agreement's terms.
34. Each Affiliated QPAM must provide a notice of its obligations
under this exemption to each applicable Covered Plan, by the dates
specified in the exemption. Each Affiliated QPAM also must provide to
each applicable sponsor and beneficial owner of a Covered Plan a copy
of this proposed exemption and final notice of the exemption as
published in the Federal Register, a separate summary describing the
facts that led to each Conviction, and a prominently displayed
statement that each Conviction results in a failure to meet a condition
in PTE 84-14 and an individual exemption, which must be identified, by
the dates specified in the exemption.
35. This proposed exemption requires each Affiliated QPAM to
maintain a designated senior compliance officer (the Compliance
Officer) who will be responsible for the QPAM's compliance with the
policies and training requirements described in this proposed
exemption. The Compliance Officer must conduct a review, for the
twelve-month period specified below (the Exemption Review), to
determine the adequacy and effectiveness of the implementation of the
Policies and Training and issue a written report (the Exemption Report)
on the findings.
36. This proposed exemption requires UBS to impose internal
procedures, controls, and protocols on each Misconduct Entity to reduce
the likelihood of any recurrence of the conduct that is the subject of
the Criminal Activity.
37. The proposed exemption requires each UBS QPAM to maintain
written processes that clearly describe: (1) how the QPAM identifies
and quantifies ``actual losses'' and how Covered Plans may recover or
avoid incurring the losses for purposes of Section III(j)(2).
38. The proposed exemption provides that if the independent auditor
or UBS or its affiliates learns of any material noncompliance with a
condition of this exemption, UBS must send a notice (a Violation
Notice) to all affected Covered Plan clients and the Department
describing the failure to meet the terms of the exemption, the extent
of the noncompliance, the fact that UBS must indemnify and hold
harmless the plans for actual losses and contractual breaches relating
to the noncompliance, as well as other requirements.
39. The proposed exemption's conditions also: include recordkeeping
requirements applicable to the Affiliated QPAMs; require disclosure of
any Deferred Prosecution Agreement or Non-Prosecution Agreement entered
into by UBS and U.S. regulators for certain criminal activity; cause
the exemption to terminate in the event UBS fails to comply with any
regulatory requirements imposed in connection with the Criminal
Activity; and require each Affiliated QPAM to inform Covered Plan
clients of the right to receive copies of the Policies.
40. Finally, the conditions of the proposed exemption require that
all the material facts and representations set forth in the Summary of
Facts and Representations are true and accurate at all times.
Statutory Findings
41. ``Administratively Feasible.'' The Department has tentatively
determined that the proposal is administratively feasible for the
Department, because among other things, a qualified independent auditor
will be engaged by the Affiliated QPAMs to perform an in-depth annual
audit covering each Affiliated QPAM's compliance with the terms of the
exemption, and a corresponding written audit report will be provided to
the Department and be made available to the public. Further, detailed
periodic reports will be made to the Department and to Covered Plan
fiduciaries.
42. ``In the interest of.'' The Department has tentatively
determined
[[Page 9650]]
that the proposed exemption is in the interests of the participants and
beneficiaries of affected Covered Plans. The Department understands
based on representations from the Applicant, that if the requested
exemption is denied, Covered Plans may be forced to find other managers
and may be deprived of the investment management services that these
plans expected to receive when they appointed these managers. Loss of
the exemption could also result in the termination of relationships
that the fiduciaries of the Covered Plans have determined to be in the
best interests of those plans, even after the disclosures of the
earlier Criminal Activity pursuant to the individual exemptions the
managers previously received.
43. ``Protective of.'' The Department has tentatively determined
that the proposed exemption is protective of the interests of the
participants and beneficiaries of affected Covered Plans. As described
above, the proposed exemption imposes a suite of affirmative
requirements and obligations upon the Affiliated QPAMs that include but
are not limited to: (a) the maintenance of the Policies and Training;
(b) a robust audit conducted by a qualified independent auditor; (c)
the provision of certain agreements and warranties on the part of the
Affiliated QPAMs; (d) specific notices and disclosures concerning the
circumstances necessitating the need for exemptive relief and the
Affiliated QPAMs' obligations under this proposed exemption; and (e)
the designation of a Compliance Officer with responsibility to ensure
compliance with the Policies and Training requirements under this
proposed exemption, and the Compliance Officer's completion of annual
Exemption Reviews and corresponding Exemption Reports. The Department
notes that this exemption includes all conditions imposed upon UBS in
PTE 2025-03. Finally, the Department notes that the most recently
completed independent audits under PTE 2023-14 and PTE 2025-03 found no
violation by the UBS QPAMs of the terms of PTE 2023-14 and PTE 2025-03
during the period of June 12, 2023 through June 11, 2025.
Department's Note
44. The relief in this proposed exemption would terminate in the
event that an entity within the UBS corporate structure is convicted of
any additional crime covered by PTE 84-14 Section I(g) or participates
in Prohibited Misconduct as defined in Section VI(s) and VI(t) of PTE
84-14, or if any term of this exemption, if granted, or PTE 84-14, as
amended, is violated. When interpreting and implementing this
exemption, UBS and the relevant QPAM should resolve any ambiguities
considering the exemption's protective purposes in favor of the
exemption's protective purposes. To the extent additional clarification
is necessary, these persons or entities should contact EBSA's Office of
Exemption Determinations by email (<a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="91f4bcfef4f5d1f5fefdbff6fee7">[email protected]</a>) or phone (202-693-
8540).
Notice to Interested Persons
UBS will provide notice of this proposed exemption to its Covered
Plan clients by first class mail or email within seven days after the
publication of the notice of proposed exemption in the Federal
Register. The notice of this proposed exemption will contain a
supplemental statement, as required pursuant to 29 CFR 2570.43(a)(2)
and a Summary the Proposed Exemption. The supplemental statement will
inform interested persons of their right to comment on and to request a
hearing with respect to the pending exemption. Written comments and
hearing requests are due within 37 days after publication of this
notice of proposed exemption in the Federal Register. The Department
will make all comments available to the public.
Warning: If you submit a comment, EBSA recommends that you include
your name and other contact information in the body of your comment,
but DO NOT submit information that you consider to be confidential, or
otherwise protected (such as a Social Security number or an unlisted
phone number) or confidential business information that you do not want
publicly disclosed. All comments may be posted on the internet and can
be retrieved by most internet search engines.
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 ERISA section 408(a) and/or Code section 4975(c)(2) does not
relieve a fiduciary or other party in interest or disqualified person
from certain other provisions of ERISA and/or the Code, including any
prohibited transaction provisions to which the exemption does not apply
and the general fiduciary responsibility provisions of ERISA section
404, 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 ERISA section 404(a)(1)(B); nor does it affect the requirement of
Code section 401(a) that the plan must operate for the exclusive
benefit of the employees of the employer maintaining the plan and their
beneficiaries;
(2) Before an exemption may be granted under ERISA section 408(a)
and/or Code section 4975(c)(2), the Department must find that the
exemption is administratively feasible, in the interests of the plan
and of its participants and beneficiaries, and protective of the rights
of participants and beneficiaries of the plan;
(3) The proposed exemption, if granted, will be supplemental to,
and not in derogation of, any other provisions of ERISA and/or the
Code, including statutory or administrative exemptions and transitional
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
(4) The proposed exemption, if granted, will be subject to the
express condition that the material facts and representations contained
in each application are true and complete, and that each application
accurately describes all material terms of the transaction which is the
subject of the exemption.
Proposed Exemption
The Department is considering granting an exemption under the
authority of ERISA section 408(a) and Internal Revenue Code (or Code)
Section 4975(c)(2), and in accordance with the procedures set forth in
29 CFR part 2570, subpart B (89 FR 4662, January 24, 2024)).\16\
Effective December 31, 1978, section 102 of Reorganization Plan No. 4
of 1978, 5 U.S.C. App. 1 (1996), transferred the authority of the
Secretary of the Treasury to issue exemptions of the type requested to
the Secretary of Labor. Therefore, this notice of proposed exemption is
issued solely by the Department.
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\16\ For purposes of the exemption, references to ERISA section
406, unless otherwise specified, should be read to refer as well to
the corresponding provisions of Code section 4975.
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Section I. Definitions
(a) Names of Certain Corporate Entities:
(1) The term ``CSAM LLC'' means Credit Suisse Asset Management,
LLC. On May 1, 2024, UBS merged CSAM LLC into UBS Asset Management
(Americas) LLC, with UBS Americas as the surviving entity.
(2) The term ``CSSEL'' means Credit Suisse Securities (Europe)
Limited an
[[Page 9651]]
indirectly a wholly owned subsidiary of UBS Group AG.
(3) The term ``UBS'' means UBS AG which is a wholly owned
subsidiary of UBS Group AG.
(4) The term ``UBS Americas'' means UBS Asset Management (Americas)
LLC and is majority owned by UBS Americas, Inc., a wholly owned
subsidiary of UBS AG.
(5) The term ``UBS Europe'' means UBS Europe SE. UBS Europe is the
successor to UBS (France) S.A., which was a wholly owned subsidiary of
UBS under the laws of France until 2023. In July of 2023, UBS France
S.A. merged into UBS Europe and set up a branch in France called UBS
Europe SE, France Branch.
(6) The term ``CSSAG'' means Credit Suisse Services AG, which was
100% owned by Credit Suisse Group AG, before UBS AG acquired Credit
Suisse Group AG.
(b) The term ``Affiliated QPAM'' means UBS Americas, and any future
entity within the Asset Management or the Global Wealth Management
Americas U.S. divisions of UBS that qualifies as a ``qualified
professional asset manager'' (as defined in Section VI(a) of PTE 84-14)
and that relies on the relief provided by PTE 84-14, and with respect
to which UBS is an ``affiliate'' (as defined in Part VI(d) of PTE 84-
14).\17\ The term Affiliated QPAM excludes a Misconduct Entity.
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\17\ UBS represents that UBS O'Connor LLC and UBS Realty
Investors LLC are entities under the UBS corporate umbrella that
currently offer investment products which are accessible by ERISA-
covered plans, but do not currently rely on Class PTE 84-14 when
managing those products.
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(c) The term ``Criminal Activity'' means the Covered Convictions
and the 2025 NPA.
(d) The term ``Covered Convictions'' means (1) the judgment of
conviction against CSSAG for one count of conspiracy to commit offenses
against the United States, in violations of Title 26, United States
Code, Section 7206(2), for the aiding, assisting, procuring,
counseling, and advising of the preparation and presentation of false
income tax returns to the Internal Revenue Service (``IRS''), in
violation of Title 18, United States Code, Section 371 (the ``2025
CSSAG Conviction''); (2) the judgment of conviction against CSSEL in
Case Number 1:21-cr-00520-WFK (the ``2022 CSSEL Conviction''); (3) the
judgment of conviction against UBS in case number 3:15-cr-00076-RNC in
the U.S. District Court for the District of Connecticut for one count
of wire fraud in violation of Title 18, United States Code, Sections
1343 and 2 in connection with UBS's submission of Yen London Interbank
Offered Rates and other benchmark interest rates between 2001 and 2010
(the ``2017 Conviction''); and (4) the judgment of conviction on
February 20, 2019, against UBS and UBS Europe in case Number 1105592033
in the French First Instance Court (the ``2019 UBS Europe
Conviction'').
(e) The term ``Covered Plan'' means a plan subject to Part IV of
Title I of ERISA (an ``ERISA-covered plan'') or a plan subject to Code
section 4975 (an ``IRA''), in each case, with respect to which an
Affiliated QPAM relies on PTE 84-14, or with respect to which an
Affiliated QPAM (or any UBS affiliate) has expressly represented that
the manager qualifies as a QPAM or relies on PTE 84-14. A Covered Plan
does not include an ERISA-covered plan or IRA to the extent the
Affiliated QPAM has expressly disclaimed reliance on QPAM status or PTE
84-14 in entering into a contract, arrangement, or agreement with the
ERISA-covered plan or IRA. Notwithstanding the above, an Affiliated
QPAM may disclaim reliance on QPAM status or PTE 84-14 in a written
modification of a contract, arrangement, or agreement with an ERISA-
covered plan or IRA, where: the modification is made in a bilateral
document signed by the client; the client's attention is specifically
directed toward the disclaimer; and the client is advised in writing
that, with respect to any transaction involving the client's assets,
the Affiliated QPAM will not represent that it is a QPAM, and will not
rely on the relief described in PTE 84-14.
(f) The term ``Exemption Period'' means the period beginning on May
5, 2026, and ending on May 4, 2031.
(g) The ``2025 NPA'' means the Non-Prosecution Agreement entered
into on May 5, 2026 between the U.S. Department of Justice and CSSAG
relating to, and contemporaneously with, the 2025 CSSAG Conviction,
based specifically on the conduct of CSSAG's Credit Suisse Singapore
branch assisting U.S. taxpayers in failing to comply with tax
obligations or in using their accounts to evade U.S. taxes and U.S.
reporting requirements.
(h) The term ``Misconduct Entity'' means any entity subject to one
of the Criminal Activities, i.e., UBS, UBS Europe (into which UBS
France was recently merged), CSSAG, and CSSEL.
(i) The term ``Related QPAM'' means any current or future
``qualified professional asset manager'' (as defined in Section VI(a)
of PTE 84-14) that relies on the relief provided by PTE 84-14, and with
respect to which UBS owns a direct or indirect five (5) percent or more
interest, but with respect to which a Misconduct Entity is not an
``affiliate'' (as defined in section VI(d)(1) of PTE 84-14). The term
``Related QPAM'' excludes a Misconduct Entity.
(j) The term ``best knowledge,'' ``to the best of one's
knowledge,'' ``best knowledge at that time,'' and other similar ``best
knowledge'' terms shall include matters that are known to the
applicable individual or should be known to such individual upon the
exercise of such individual's due diligence required under the
circumstances, and, with respect to an entity other than a natural
person, such term includes matters that are known to the directors and
officers of the entity or should be known to such individuals upon the
exercise of such individuals' due diligence required under the
circumstances.
(k) The term ``UBS Seconded Employee'' means, an individual
nominally employed by a Misconduct Entity who performs work on behalf
of a UBS QPAM; provided that such UBS QPAM is solely responsible for
the management and control of the employee's job activities performed
on behalf of such QPAM. Notwithstanding the preceding sentence, the UBS
QPAM must be solely responsible for the establishment of the employee's
job duties and terms of employment (including compensation, promotions,
and benefits); and must have supervisory responsibility with respect
to, among other things, the employee's performance, training, and
disciplinary actions.
(l) The term ``UBS QPAMs'' means, individually or collectively, the
Affiliated QPAMs and/or the Related QPAMs.
(m) The ``conduct'' of any person or entity that is the ``subject
of'' any misconduct refers to the misconduct by any UBS personnel that
is the basis of (or the subject of) any Criminal Activity.
(n) The term ``participate in'' when used to describe an individual
or entity's participation in the Criminal Activity refers not only to
active participation in the Criminal Activity but also includes an
individual or entity's knowledge or approval of the Criminal Activity,
without taking active steps to prohibit such conduct, such as reporting
the conduct to the individual's supervisors, and to the Board of
Directors.
Section II. Covered Transactions
If this proposed exemption is granted, the UBS QPAMs would not be
precluded from relying on the exemptive relief provided by Prohibited
Transaction Exemption 84-14 (PTE 84-
[[Page 9652]]
14) \18\ during the Exemption Period, notwithstanding the Criminal
Activity, provided that the definitions in Section I and the conditions
in Section III are satisfied.
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\18\ 49 FR 9494 (March 13, 1984), as corrected at 50 FR 41430,
(Oct. 10, 1985), as amended at 70 FR 49305 (Aug. 23, 2005), as
amended at 75 FR 38837 (July 6, 2010), and as amended at 89 FR 23090
(April 3, 2024).
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Section III. Conditions
(a) The UBS QPAMs (including their officers, directors, agents
other than the Misconduct Entities, employees of such QPAMs, and UBS
Seconded Employees) did not know nor have reason to know of and did not
participate in the conduct underlying the Criminal Activity. Further,
any other party engaged on behalf of the UBS QPAMs who had
responsibility for, or exercised authority in connection with, the
management of plan assets did not know or have reason to know of and
did not participate in the criminal conduct underlying the Criminal
Activity.
(b) The UBS QPAMs (including their officers, directors, agents
other than the Misconduct Entities, employees of such QPAMs, and UBS
Seconded Employees) did not receive direct compensation, or knowingly
receive indirect compensation, in connection with the criminal conduct
that is the subject of the Criminal Activity. Further, any other party
engaged on behalf of the UBS QPAMs who had responsibility for, or
exercised authority in connection with the management of plan assets
did not receive direct compensation, or knowingly receive indirect
compensation, in connection with the Criminal Activity;
(c) The Affiliated QPAMs do not currently and will not in the
future employ or knowingly engage any of the individuals who
participated in the criminal conduct underlying the Criminal Activity;
(d) At all times during the Exemption Period, no Affiliated QPAM
will use its authority or influence to direct an ``investment fund''
(as defined in Section VI(b) of PTE 84-14) that is subject to ERISA or
the Code and managed by such Affiliated QPAM with respect to one or
more Covered Plans, to enter into any transaction with a Misconduct
Entity or to engage a Misconduct Entity to provide any service to such
investment fund, for a direct or indirect fee borne by such investment
fund, regardless of whether such transaction or service may otherwise
be within the scope of relief provided by an administrative or
statutory exemption. An Affiliated QPAM will not fail this condition
solely because:
(1) A UBS (or successor) affiliate serves as a local sub-custodian
that is selected by an unaffiliated global custodian that, in turn, is
selected by someone other than a UBS QPAM; or
(2) Services are provided by UBS Seconded Employees;
(e) Any failure of an Affiliated QPAM to satisfy Section I(g) of
PTE 84-14 arose solely from the Criminal Activity;
(f) A UBS QPAM did not exercise authority over the assets of any
plan subject to Part 4 of Title I of ERISA (an ``ERISA-covered plan'')
or Code section 4975 (an ``IRA'') in a manner that it knew or should
have known would further the criminal conduct underlying the Criminal
Activity; or cause the UBS QPAM or its affiliates to directly or
indirectly profit from the criminal conduct underlying the Criminal
Activity;
(g) No Misconduct Entity will act as a fiduciary within the meaning
of ERISA section 3(21)(A)(i) or (iii) or Code section 4975(e)(3)(A) and
(C) with respect to ERISA-covered Plan and IRA assets, except that each
may act as such a fiduciary with respect to employee benefit plans
sponsored for its own employees or employees of an affiliate. No
Misconduct Entity will be treated as violating the conditions of the
exemption solely because it acted as an investment advice fiduciary
within the meaning of ERISA section 3(21)(A)(ii) or Code section
4975(e)(3)(B);
(h)(1) Each Affiliated QPAM must maintain, adjust (to the extent
necessary), implement, and follow the written policies and procedures
described below (Policies). The Policies must require and must be
reasonably designed to ensure that:
(i) The asset management decisions of the QPAM are conducted
independently of the corporate and management and business activities
of each Misconduct Entity, and without considering any fee a related
local sub-custodian may receive from those decisions. This condition
does not preclude an Affiliated QPAM from receiving publicly available
research and other widely available information from a UBS affiliate;
(ii) The QPAM fully complies with ERISA's fiduciary duties, and
with ERISA and the Code's prohibited transaction provisions, in each
case as applicable with respect to each Covered Plan, and does not
knowingly participate in any violation of these duties and provisions
with respect to Covered Plans;
(iii) The QPAM does not knowingly participate in any other person's
violation of ERISA or the Code with respect to Covered Plans;
(iv) Any filings or statements made by the QPAM to regulators,
including but not limited to, the Department, the Department of the
Treasury, the Department of Justice, and the Pension Benefit Guaranty
Corporation, on behalf of or in relation to Covered Plans, are
materially accurate and complete, to the best of such QPAM's knowledge
at that time;
(v) To the best of its knowledge at that time, the QPAM does not
make material misrepresentations or omit material information in its
communications with such regulators with respect to Covered Plans, or
make material misrepresentations or omit material information in its
communications with Covered Plans; and
(vi) The QPAM complies with the terms of this exemption, if
granted;
(2) Any violation of, or failure to comply with an item in
subparagraphs (h)(1)(ii) through (vi), is corrected as soon as
reasonably possible upon discovery, or as soon after the QPAM
reasonably should have known of the noncompliance (whichever is
earlier), and any such violation or compliance failure not so corrected
is reported, upon the discovery of such failure to so correct, in
writing. This report must be made to the head of compliance and the
general counsel (or their functional equivalent) of the relevant UBS
QPAM that engaged in the violation or failure and the independent
auditor responsible for reviewing compliance with the Policies. A QPAM
will not be treated as having failed to develop, implement, maintain,
or follow the Policies, if it corrects any instance of noncompliance as
soon as reasonably possible upon discovery, or as soon as reasonably
possible after the QPAM reasonably should have known of the
noncompliance (whichever is earlier), and provided that it adheres to
the reporting requirements set forth in this subparagraph (2);
(3) Each Affiliated QPAM must maintain, adjust (to the extent
necessary), and implement or continue a program of training during the
Exemption Period (the Training) that is conducted at least annually for
all relevant Affiliated QPAM asset/portfolio management, trading,
legal, compliance, and internal audit personnel.\19\ The Training must:
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\19\ The exemption does not preclude a UBS QPAM from maintaining
separate training programs provided each training program complies
with this exemption.
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(i) At a minimum, cover the Policies, ERISA and Code compliance
(including
[[Page 9653]]
applicable fiduciary duties and the prohibited transaction provisions),
ethical conduct, the consequences for not complying with the conditions
of this exemption (including any loss of exemptive relief provided
herein), and the requirement for prompt reporting of wrongdoing;
(ii) Be conducted by a professional who has been prudently selected
and who has appropriate technical training and proficiency with ERISA
and the Code to perform the tasks required by this exemption; and
(iii) Be conducted in-person, electronically, or via a website;
(i)(1) Each Affiliated QPAM submits to an audit conducted by an
independent auditor, who has been prudently selected and who has
appropriate technical training and proficiency with ERISA and the Code,
to evaluate the adequacy of, and each Affiliated QPAM's compliance
with, the Policies and Training described above in Section (h). The
audit requirement must be incorporated in the Policies.
(2) UBS shall provide the Department a copy of the engagement
agreement with the independent auditor within 15 days after its
execution. Within 45 days after executing the engagement agreement with
the independent auditor, and after consultation with the auditor, UBS
must finalize and provide to the independent auditor a schedule for
completion of the audit. The schedule must include target dates for the
auditor to send initial information and document requests to UBS and
for UBS to respond to those requests. The Department's receipt and
incorporation of the engagement agreement into the record, with or
without comment, should not be taken as an indication that the
Department has approved of the engagement agreement;
(3) The initial audit under this exemption must be completed for
the period beginning after the last audit period subject to a completed
audit under PTE 2025-03 and ending on May 4, 2027, and must at a
minimum include a review of the transition period from May 5, 2025 to
May 4, 2026 to ensure the satisfaction of PTE 84-14's conditions during
that time period. The initial audit must be completed by Friday,
November 5, 2027. The second audit must cover the period that begins on
May 5, 2027, and ends on May 4, 2028, and must be completed by Monday,
November 6, 2028. The third audit must cover the period that begins on
May 5, 2028, and ends on May 4, 2029, and must be completed by Monday,
November 5, 2029. The fourth audit must cover the period that begins on
May 5, 2029, and ends on May 4, 2030, and must be completed by Tuesday,
November 5, 2030. The fifth audit must cover the period that begins on
May 5, 2030, and ends on May 4, 2031, and must be completed by
Wednesday, November 5, 2031.
(4) Within the scope of the audit and to the extent necessary for
the auditor, in its sole opinion, to complete its audit and comply with
the conditions for relief described herein, and only to the extent such
disclosure is not prevented by state or federal statute, or involves
communications subject to attorney-client privilege, each Affiliated
QPAM and, if applicable, UBS, must grant the auditor unconditional
access to its business, including, but not limited to: its computer
systems; business records; transactional data; workplace locations;
training materials; and personnel. Such access is limited to
information relevant to the auditor's objectives as specified by the
terms of this exemption;
(5) The auditor's engagement must specifically require the auditor
to annually determine whether each Affiliated QPAM has developed,
implemented, maintained, and followed the Policies in accordance with
the conditions of this exemption, if granted, and has developed and
implemented the Training, as required herein;
(6) The auditor's engagement must specifically require the auditor
to test each Affiliated QPAM's operational compliance with the Policies
and Training. In this regard, the auditor must test, for each
Affiliated QPAM, a sample of such Affiliated QPAM's transactions
involving Covered Plans, sufficient in size and nature to afford the
auditor a reasonable basis to determine such Affiliated QPAM's
operational compliance with the Policies and Training;
(7) For the audit, on or before the end of the relevant period
described in Section III(i)(1) for completing the audit, the auditor
must issue a written report (the Audit Report) to UBS and the
Affiliated QPAM to which the audit applies that describes the
procedures performed by the auditor in connection with its examination.
The auditor, at its discretion, may issue a single consolidated Audit
Report that covers all the Affiliated QPAMs. The Audit Report must
include the auditor's specific determinations regarding:
(i) The adequacy of each Affiliated QPAM's Policies and Training;
each Affiliated QPAM's compliance with the Policies and Training; the
need, if any, to strengthen such Policies and Training; and any
instance of the respective Affiliated QPAM's noncompliance with the
written Policies and Training described in Section III(h) above. The
Affiliated QPAM must promptly address any noncompliance and prepare a
written plan of action to address any determination as to the adequacy
of the Policies and Training and the auditor's recommendations (if any)
with respect to strengthening the Policies and Training of the
respective Affiliated QPAM. Any action taken or the plan of action to
be taken by the respective Affiliated QPAM must be included in an
addendum to the Audit Report (such addendum must be completed prior to
the certification described in Section III(i)(7) below). In the event
such a plan of action to address the auditor's recommendation regarding
the adequacy of the Policies and Training is not completed by the time
of submission of the Audit Report, the following period's Audit Report
must state whether the plan was satisfactorily completed. Any
determination by the auditor that an Affiliated QPAM has implemented,
maintained, and followed sufficient Policies and Training must not be
based solely or in substantial part on an absence of evidence
indicating noncompliance. In this last regard, any finding that an
Affiliated QPAM has complied with the requirements under this
subparagraph must be based on evidence that each Affiliated QPAM has
implemented, maintained, and followed the Policies and Training
required by this exemption. Furthermore, the auditor must not solely
rely on the Exemption Report created by the Compliance Officers, as
described in Section III(m) below, as the basis for the auditor's
conclusions in lieu of independent determinations and testing performed
by the auditor as required by Section III(i)(3) and (4) above; and
(ii) The adequacy of the Exemption Review described in Section
III(m);
(8) The auditor must notify the respective Affiliated QPAM of any
instance of noncompliance identified by the auditor within five (5)
business days after such noncompliance is identified by the auditor,
regardless of whether the audit has been completed as of that date;
(9) With respect to the Audit Report, the General Counsel, or one
of the three most senior executive officers of the Affiliated QPAM to
which the Audit Report applies, must certify in writing, under penalty
of perjury, that the officer has reviewed the Audit Report and this
exemption; that, to the best of such officer's knowledge at the time,
such Affiliated QPAM has addressed, corrected, and remedied any
noncompliance and inadequacy or has an appropriate written plan to
address any inadequacy regarding the Policies
[[Page 9654]]
and Training identified in the Audit Report. Such certification must
also include the signatory's determination that, to the best of such
officer's knowledge at the time, the Policies and Training in effect at
the time of signing are adequate to ensure compliance with the
conditions of this exemption and with the applicable provisions of
ERISA and the Code;
(10) The Risk Committee of UBS's Group AG's Board of Directors is
provided a copy of the Audit Report; and a senior executive officer of
UBS Group AG's Compliance and Operational Risk Control function must
review the Audit Report for each Affiliated QPAM and must certify in
writing, under penalty of perjury, that such officer has reviewed the
Audit Report;
(11) Each Affiliated QPAM provides its certified Audit Report to
the Office of Exemption Determinations (OED) via email to <a href="/cdn-cgi/l/email-protection#b9dc94f6fcfdf9ddd6d597ded6cf"><span class="__cf_email__" data-cfemail="bdd890f2f8f9fdd9d2d193dad2cb">[email protected]</span></a>. This delivery must take place no later than 45 days
following completion of the Audit Report. The Audit Reports will be
made part of the public record regarding this exemption. Furthermore,
each Affiliated QPAM must make its Audit Reports unconditionally
available, electronically or otherwise, for examination upon request by
any duly authorized employee or representative of the Department, other
relevant regulators, and any fiduciary of a Covered Plan;
(12) The auditor must provide the Department, upon request, for
inspection and review, access to all the workpapers created and used in
connection with the audit, provided such access and inspection is
otherwise permitted by law;
(13) UBS must notify the Department of Labor's Office of Exemption
Determinations (OED) no later than 90 days after the Effective Date of
this exemption, of the auditor selected to complete audits required by
Section III(i)(1) above for the periods covering May 5, 2026, through
May 4, 2031. Any engagement agreement with an auditor to perform the
audit required by this exemption that is entered into subsequent to the
effective date of this exemption must be submitted to OED no later than
two months after the execution of such agreement;
(14) At the Department's request, UBS and the Auditor shall provide
the Department with updates about the progress of the audit. The
Department's requests may be directed to UBS and/or the auditor;
(15) For only the initial audit required by Section III(i)(3) above
the auditor must consult with the auditors who performed the audits
required pursuant to PTE 2025-03 and PTE 2023-14, unless such auditor
is the same auditor selected under Section III(i)(1). UBS must notify
OED if for any reason the consultation required by this paragraph 15
cannot occur and must provide an explanation for why the consultation
cannot occur. Such consultation may, but need not, occur for subsequent
audits; and
(16) UBS must notify the Department of a change in the independent
auditor no later than two months after the engagement of a substitute
or subsequent auditor and must provide an explanation for the
substitution or change including a description of any material disputes
between the terminated auditor and UBS.
(j) As of the effective date of this exemption, with respect to any
arrangement, agreement, or contract between an Affiliated QPAM and a
Covered Plan, the QPAM agrees and warrants to Covered Plans:
(1) To comply with ERISA and the Code, as applicable with respect
to such Covered Plan; to refrain from engaging in prohibited
transactions that are not otherwise exempt (and to promptly correct any
prohibited transactions); and to comply with the standards of prudence
and loyalty set forth in ERISA section 404 with respect to each such
ERISA-covered plan and IRA to the extent that ERISA section 404 is
applicable;
(2) To indemnify and hold harmless the Covered Plan for any actual
losses resulting directly from the QPAM's violation of any conditions
of this exemption, ERISA's fiduciary duties, as applicable, and of the
prohibited transaction provisions of ERISA and the Code, as applicable;
a breach of contract by the QPAM; or any claim arising out of the
failure of such QPAM to qualify for the exemptive relief provided by
PTE 84-14 as a result of a violation of PTE 84-14 Section I(g), other
than a Conviction covered under this exemption. The term ``actual
losses'' includes, but is not limited to, losses and related costs
arising from unwinding transactions with third parties and from
transitioning Plan assets to an alternative asset manager as well as
costs associated with any exposure to excise taxes under Code section
4975 as a result of a QPAM's inability to rely upon the relief in PTE
84-14;
(3) Not to require (or otherwise cause) the Covered Plan to waive,
limit, or qualify the liability of the QPAM for violating ERISA or the
Code for engaging in prohibited transactions;
(4) Not to restrict the ability of the Covered Plan to terminate or
withdraw from its arrangement with the QPAM, with respect to any
investment in a separately-managed account or pooled fund subject to
ERISA and managed by such QPAM, with the exception of reasonable
restrictions, appropriately disclosed in advance, that are specifically
designed to ensure equitable treatment of all investors in a pooled
fund in the event such withdrawal or termination may have adverse
consequences for all other investors. In connection with any such
arrangement involving investments in pooled funds subject to ERISA
entered into after the effective date of this exemption, the adverse
consequences must relate to a lack of liquidity of the underlying
assets, valuation issues, or regulatory reasons that prevent the fund
from promptly redeeming an ERISA-covered plan's or IRA's investment,
and such restrictions must be applicable to all such investors and be
effective no longer than reasonably necessary to avoid the adverse
consequences;
(5) Not to impose any fees, penalties, or charges for such
termination or withdrawal with the exception of reasonable fees,
appropriately disclosed in advance, that are specifically designed to
prevent generally-recognized abusive investment practices or
specifically designed to ensure equitable treatment of all investors in
a pooled fund in the event such withdrawal or termination may have
adverse consequences for all other investors, provided that such fees
are applied consistently and in a like manner to all such investors;
(6) Not to include exculpatory provisions disclaiming or otherwise
limiting liability of the QPAM for a violation of such agreement's
terms. To the extent consistent with ERISA section 410, however, this
provision does not prohibit disclaimers for liability caused by an
error, misrepresentation, or misconduct of a plan fiduciary or other
party hired by the plan fiduciary who is independent of UBS (and
affiliates), or damages arising from acts outside the control of the
Affiliated QPAM; and
(7) Within 120 days after the effective date of this exemption,
each QPAM must provide a notice of its obligations under this Section
III(j) to each Covered Plan. For prospective Covered Plans that enter
into a written asset or investment management agreement with a QPAM on
or after a date that is 120 days after the effective date of this
exemption, the QPAM must agree to its obligations under this Section
III(j) in an updated investment management agreement between the QPAM
and such clients or other written contractual agreement.
[[Page 9655]]
Notwithstanding the above, a QPAM will not violate the condition solely
because a Covered Plan refuses to sign an updated investment management
agreement. For new Covered Plans that were provided an investment
management agreement prior to the effective date of this exemption,
returning it within 120 days after the effective date of this
exemption, and that signed investment management agreement requires
amendment to meet the terms of the exemption, the QPAM may provide the
new Covered Plan with amendments that need not be signed with any
documents required by this subsection (j) within ten (10) business days
after receipt of the signed agreement.
(k) Within 60 days after the publication date of the notice of
final exemption in the Federal Register, each Affiliated QPAM provides
notice of the proposed and final exemption as published in the Federal
Register, along with a summary describing the facts that led to the
Criminal Activity(the Summary), which has been submitted to the
Department, and a prominently displayed statement (the Statement) that
the Criminal Activity results in a failure to meet a condition in PTE
84-14, to each sponsor and beneficial owner of a Covered Plan that has
entered into a written asset or investment management agreement with an
Affiliated QPAM, or the sponsor of an investment fund in any case where
an Affiliated QPAM acts as a sub-adviser to the investment fund in
which such ERISA-covered plan and IRA invests. The Summary will be
submitted to OED before it is distributed by each Affiliated QPAM. All
prospective Covered Plan clients that enter into a written asset or
investment management agreement with an Affiliated QPAM after a date
that is 60 days after the effective date of this exemption must receive
a copy of the notice of the exemption, the Summary, and the Statement
before, or contemporaneously with, the Covered Plan's receipt of a
written asset or investment management agreement from the Affiliated
QPAM. The notices may be delivered electronically (including by an
email that has a link to this exemption).
(l) The Affiliated QPAMs must comply with each condition of PTE 84-
14, as amended, with the sole exception of the violation of Section
I(g) of PTE 84-14 that is attributable to the Criminal Activity. If,
during the Exemption Period, an entity within UBS's corporate structure
engages in conduct prohibited by Section I(g) of PTE 84-14 (other than
the Criminal Activity), relief in this exemption would terminate
immediately.
(m)(1) Within 60 days after the date of publication of the
exemption, each Affiliated QPAM must designate two senior Compliance
Officers (the Compliance Officers) who will be responsible for
compliance with the Policies and Training requirements described
herein. For purposes of this condition (m), each relevant line of
business within an Affiliated QPAM may designate its own two Compliance
Officers. Notwithstanding the above, the appointed Compliance Officers
must not be a person who: (i) participated in the criminal conduct
underlying the Criminal Activity, or knew of, or (ii) had reason to
know of, the Criminal Activity without taking active documented steps
to stop the misconduct.
(2) The Compliance Officers must conduct a review of each twelve-
month period of the Exemption Period (the Exemption Review), to
determine the adequacy and effectiveness of the implementation of the
Policies and Training.
(3) With respect to the Compliance Officers, the following
conditions must be met:
(i) Each Compliance Officer must be a professional who has
extensive experience with, and knowledge of, the regulation of
financial services and products, including under ERISA and the Code;
(ii) Each Compliance Officer must have a direct reporting line to
the highest-ranking corporate officer in charge of compliance for the
applicable Affiliated QPAM or the highest-ranking corporate officer in
charge of the applicable Affiliated QPAM; and
(iii) The Compliance Officers responsible for the Exemption Review
must provide the Exemption Report described in Section III(m)(4)(ii) to
the Auditor within seven (7) days of completing the report.
(4) With respect to the Exemption Review, the following conditions
must be met:
(i) The annual Exemption Review includes a review of the Affiliated
QPAM's compliance with and effectiveness of the Policies and Training
and of the following: any compliance matter related to the Policies or
Training that was identified by, or reported to, the Compliance
Officers or others within the compliance and risk control function (or
its equivalent) during the time period; the most recent Audit Report
issued pursuant to this exemption or PTE 2025-03; any material change
in the relevant business activities of the Affiliated QPAMs; and any
change to ERISA, the Code, or regulations related to fiduciary duties
and the prohibited transaction provisions that may be applicable to the
activities of the Affiliated QPAMs;
(ii) The Compliance Officers must prepare a written report for the
Exemption Review (an Exemption Report) that (A) summarizes their
material activities during the prior year; (B) sets forth any instance
of noncompliance discovered during the prior year, and any related
corrective action; (C) details any change to the Policies or Training
to guard against any similar instance of noncompliance occurring again;
and (D) makes recommendations, as necessary, for additional training,
procedures, monitoring, or additional and/or changed processes or
systems, and management's actions on such recommendations;
(iii) In the Exemption Report, each Compliance Officer must certify
in writing that to the best of his or her knowledge at the time: (A)
the report is accurate; (B) the Policies and Training are working in a
manner which is reasonably designed to ensure that the Policies and
Training requirements described herein are met; (C) any known instance
of noncompliance during the prior year and any related correction taken
to date have been identified in the Exemption Report; and (D) the
Affiliated QPAMs have complied with the Policies and Training, and/or
corrected (or are correcting) any known instances of noncompliance in
accordance with Section III(h) above;
(iv) The Exemption Report must be provided to appropriate corporate
officers of UBS and to each Affiliated QPAM to which such report
relates, and to the head of compliance and the general counsel (or
their functional equivalent) of UBS, and the relevant Affiliated QPAM.
The Exemption Report must be made unconditionally available to the
independent auditor described in Section III(i) above; and
(v) The Exemption Review, including the Compliance Officers'
written annual Exemption Report, must cover the Exemption Period, and
the Exemption Review, including the Compliance Officers' written
Exemption Report, must be completed within three (3) months following
the end of the period to which it relates.
(n) UBS imposes its internal procedures, controls, and protocols on
each Misconduct Entity to reduce the likelihood of any recurrence of
conduct that is the subject of the Criminal Activity;
(o) Relief in this exemption will terminate on the date that is one
year
[[Page 9656]]
following the date that a U.S. regulatory authority makes a final
decision that UBS or an affiliate of either failed to comply in all
material respects with any requirement imposed by such regulatory
authority in connection with the Criminal Activity.
(p) Each Affiliated QPAM will maintain records necessary to
demonstrate that the conditions of this exemption have been met for six
(6) years following the date of any transaction for which the
Affiliated QPAM relies upon the relief in this exemption;
(q) During the Exemption Period, UBS must: (1) immediately disclose
to the Department any Deferred Prosecution Agreement (a DPA) or Non-
Prosecution Agreement (an NPA) with the U.S. Department of Justice,
entered into by UBS or any of its affiliates (as defined in Section
VI(d) of PTE 84-14) in connection with conduct described in Section
I(g) of PTE 84-14 or section 411 of ERISA via email addressed to <a href="/cdn-cgi/l/email-protection#2e4b03616b6a6e4a414200494158"><span class="__cf_email__" data-cfemail="95f0b8dad0d1d5f1faf9bbf2fae3">[email protected]</span></a>; and (2) immediately provide the Department with any
information requested by the Department, as permitted by law, regarding
the agreement and/or conduct and allegations that led to the agreement
via email addressed to <a href="/cdn-cgi/l/email-protection#5b3e76141e1f1b3f3437753c342d"><span class="__cf_email__" data-cfemail="ee8bc3a1abaaae8a8182c0898198">[email protected]</span></a>;
(r) Within 60 days after the effective date of this exemption, each
Affiliated QPAM, in its agreements with, or in other written
disclosures provided to Covered Plans, will clearly and prominently
inform Covered Plan clients of their right to obtain a copy of the
Policies or a description (Summary Policies) which accurately
summarizes key components of the QPAM's written Policies developed in
connection with this exemption. If the Policies are thereafter changed,
each Covered Plan client must receive a new disclosure within six (6)
months following the end of the calendar year during which the Policies
were changed.\20\ With respect to this requirement, the description may
be continuously maintained on a website, provided that such website
link to the Policies or Summary Policies is clearly and prominently
disclosed to each Covered Plan.
---------------------------------------------------------------------------
\20\ If the UBS meets this disclosure requirement through
Summary Policies, changes to the Policies shall not result in the
requirement for a new disclosure unless, as a result of changes to
the Policies, the Summary Policies are no longer accurate.
---------------------------------------------------------------------------
(s) An Affiliated QPAM will not fail to meet the terms of this
exemption solely because a different Affiliated QPAM fails to satisfy a
condition for relief described in Section III(c), (d), (h), (i), (j),
(k), (l), (m), (p), (r), or (v); or if the independent auditor
described in Section III(i) fails to comply with a provision of the
exemption other than the requirement described in Section III(i)(12),
provided that such failure did not result from any actions or inactions
of UBS or its affiliates;
(t) If the independent auditor or UBS or its affiliates learns of
any material noncompliance with a condition of this exemption, UBS must
send a notice (a ``Violation Notice'') to all affected Covered Plans
and the Department that prominently and conspicuously states or
describes: (1) that UBS, or the UBS QPAM, as applicable, failed to meet
the terms of this exemption (and describes the failure); (2) the extent
to which UBS QPAMs have potentially been operating without an exemption
due to the failure; (3) whether UBS plans to apply for retroactive
relief from the Department for this failed condition; (4) any further
transactions engaged in by the UBS QPAMs on behalf of Covered Plans
that may be non-exempt prohibited transactions unless the Department
grants retroactive relief for the period in which the transactions
occurred; and (5) UBS must indemnify and hold harmless the Covered Plan
for any actual losses resulting directly from the QPAM's failure to
comply with any conditions of this exemption, ERISA's fiduciary duties
and of the prohibited transaction provisions of ERISA and the Code, a
breach of contract by the QPAM, or any claim arising out of the failure
of such QPAM to qualify for the exemptive relief provided by PTE 84-14
as a result of a violation of PTE 84-14 Section I(g), other than a
Criminal Activity. The Violation Notice must be sent to all affected
Covered Plans and the Department within 30 days after the independent
auditor becomes aware of the violation. If the Violation Notice is
inadvertently not sent within the 30-day period, the UBS QPAM may self-
correct the failure by sending the Violation Notice to all affected
Covered Plans and the Department with an addendum describing the
failure as soon as practicable upon discovery, but no later than 30
days after the completion of the next scheduled audit.
(u) All the material facts and representations set forth in the
Summary of Facts and Representations are true and accurate at all
times.
(v) Each UBS QPAM must maintain written processes that clearly
describe: (1) how the QPAM identifies and quantifies ``actual losses''
for purposes of Section III(j)(2); and (2) how Covered Plans may
recover or avoid incurring the losses that the UBS QPAM must indemnify
or hold Covered Plans harmless from incurring pursuant to Section
III(j)(2). Each UBS QPAM must develop these processes and deliver a
copy of the processes to each Covered Plan within 90 days after the
date the Department publishes a final exemption in the Federal Register
and notify Covered Plans of any subsequent material changes to the
processes within 30 days of the effective date of such changes. QPAMs
that have already satisfied this requirement in PTE 2025-03 are deemed
to have satisfied the same condition of this exemption.
Applicability Date: This exemption will be in effect for the period
beginning on May 5, 2026, through May 4, 2031.
Signed at Washington, DC, this 17th day of February 2026.
Christopher Motta,
Acting Director, Office of Exemption Determinations, Employee Benefits
Security Administration, U.S. Department of Labor.
[FR Doc. 2026-03825 Filed 2-25-26; 8:45 am]
BILLING CODE 4510-29-P
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</html>Indexed from Federal Register on February 26, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.