2026-00291Notice

Labor Dept Reviews Cross-Trading Exemption for Pensions

Published Date: 1/12/2026

Notice

Summary

The Department of Labor is asking for public feedback on a paperwork update about rules for cross-trading securities in pension plans. This affects investment managers and pension plan fiduciaries who must follow clear policies to keep trades fair and transparent. Comments are open until February 11, 2026, with no new costs expected—just smoother, clearer rules.

Analyzed Economic Effects

4 provisions identified: 2 benefits, 2 costs, 0 mixed.

Advance Delivery of Cross‑Trading Policies

If a pension plan might join an investment manager's cross‑trading program, the investment manager must provide its written cross‑trading policies and procedures in advance to the plan fiduciary considering the program. This requirement implements the statutory exemption in ERISA section 408(b)(19).

Compliance Officer and Annual Reporting

Investment managers operating a cross‑trading program must designate a compliance officer to periodically review the program and must provide each plan fiduciary an annual report describing the review steps, the level of compliance, and any specific instances of noncompliance. The requirement to issue an annual report to each plan fiduciary is part of the statutory exemption conditions.

No Federal Filing Required

The statutory exemption for cross‑trading does not require any reporting or filing with the Federal government. Investment managers must report to plan fiduciaries, but they are not required to file those reports with a federal agency under this exemption.

Paperwork Burden and Cost Estimates

The Department estimates this information collection affects 265 private‑sector respondents, with 2,385 total responses, an annual time burden of 2,769 hours, and estimated annual other costs of $21,632. DOL seeks Office of Management and Budget authorization for this collection for three (3) years under OMB Control Number 1210-0130.

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Key Dates

Published Date
Comments Due
1/12/2026
2/11/2026

Department and Agencies

Department
Independent Agency
Agency
Labor Department
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