ERISA Advisory Opinion - Federated Investors

This document is about an advisory opinion from the U.S. Department of Labor regarding whether Prohibited Transaction Class Exemption 77-3 (PTE 77-3) provides relief for the investment by a bank's in-house plan in a mutual fund advised by the bank, through an in-kind exchange of assets for mutual fund shares. The Department concludes that PTE 77-3 can provide relief for such in-kind exchanges, provided the conditions of the exemption are satisfied and the plan fiduciary acts prudently and solely in the interest of the plan's participants and beneficiaries.