"Under Prohibited Transaction Exemption (PTE) 98-54, plans may engage in certain foreign exchange transactions which are normally prohibited under the Employee Retirement Income Security Act (ERISA). ERISA prohibits foreign exchange transactions by plans because of their prior relationships with banks and broker-dealers. The final exemption allows plans to engage in certain foreign exchange transactions based on standing instructions from an independent fiduciary of the plan. Standing instructions authorize banks and broker-dealers to exchange currencies of different nations upon the occurrence of certain stated events which have been specified in instructions from a plan’s fiduciary."  MORE >>