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Feb 25, 2013

DOL Provides ERISA Relief for Cleared Swap Transactions with Plans

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On February 7, 2013, the U.S. Department of Labor (“DOL”) issued Advisory Opinion 2013-01A addressing the application of certain aspects of ERISA to swap contracts subject to mandatory clearing. The Advisory Opinion covers swaps regulated by the Commodities Futures Trading Commission but does not appear to cover security-based swaps regulated by the Securities and Exchange Commission.

The Advisory Opinion provides a path forward for ERISA plans that utilize swaps subject to the Dodd-Frank Act’s mandatory clearing requirements as part of their investment strategy and eliminates most of the ERISA uncertainty for market participants in entering into swap agreements with plans. It also offers useful guidance to those who negotiate the ERISA representations and other terms in swap agreements.

View full memo, "DOL Provides ERISA Relief for Cleared Swap Transactions with Plans"

Authors and Contributors

John J. Cannon III

Partner

Compensation, Governance & ERISA

+1 212 848 8159

+1 212 848 8159

New York

Kenneth J. Laverriere

Partner

Compensation, Governance & ERISA

+1 212 848 8172

+1 212 848 8172

New York

Doreen E. Lilienfeld

Partner

Compensation, Governance & ERISA

+1 212 848 7171

+1 212 848 7171

New York

Linda Rappaport

Of Counsel

Compensation, Governance & ERISA

+1 212 848 7004

+1 212 848 7004

New York

Donna Parisi

Partner

Derivatives & Structured Products

+1 212 848 7367

+1 212 848 7367

New York

Azam Aziz

Partner

Derivatives & Structured Products

+1 212 848 8154

+1 212 848 8154

New York

Geoffrey Goldman

Partner

Derivatives & Structured Products

+1 212 848 4867

+1 212 848 4867

New York