Copying and distributing are prohibited without permission of the publisher
Legal brief
19 December 2006
Regulatory changes to the rescue?
Two recent changes in US law are likely to increase the profile of US pension plans in the securities lending marketplace, Michael Coran investigates.
The first change came through legislation: on 17 August 2006, President Bush signed the Pension Protection Act (PPA) of 2006. The second change involved agency regulation: on 30 October 2006, the US Department of Labor's Employee Benefits Security Administration announced the revocation of longstanding prohibited transaction exemptions for pension plans and the adoption of new, more permissive replacement exemptions.
The ability of a US pension plan to invest plan assets, like securities, is governed by provisions in the Employee Retirement Income Security Act (Erisa) and the Internal Revenue Code. For roughly 25 years, the Department of Labor (DOL) maintained certain exceptions to the statutory limitations applicable to plan securities lending activities.
These exceptions were known...
Access to this content is denied because you are not logged in. Please login to view this content
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
