12/15/99: The Department of Labor has issued a proposed class exemption from ERISA's prohibited transaction rules, for cross-trades of securities by index and model-driven funds.
Excerpt:If granted, the proposed exemption would permit cross-trades of securities among Index and Model-Driven Funds (Funds) managed by investment managers and among such Funds and certain large accounts to which such investment managers act as a "trading adviser" in connection with a specific portfolio restructuring program. The proposed exemption, if granted, would affect participants and beneficiaries of employee benefit plans whose assets are invested in Index or Model-Driven Funds, large pension plans involved in portfolio restructuring programs, as well as the Funds and the investment managers.
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