On July 2, 2002, the Department of Labor (DOL) finalized an amendment to Prohibited Transaction Exemption 96-62 (PTE 96-62), known as EXPRO, to streamline the process for parties to seek authorization from the DOL to engage in certain prohibited transactions.

The exemption applies to certain prospective transactions between employee benefit plans and parties in interest where such transactions are specifically authorized by the DOL and are subject to terms, conditions and representations that are substantially similar to exemptions previously granted by the DOL. The exemption affects plans, participants and beneficiaries of such plans and certain persons engaging in such transactions.

PTE 96-62 requires that applicants demonstrate to the DOL that their proposed transactions are substantially similar to transactions in at least two exemptions previously granted by the department within five years of their submission. The amendment provides applicants with more cases on which to base their transactions.

The amendment to EXPRO also provides applicants with an alternate method of satisfying the program's requirements: Instead of having to cite as substantially similar two individual exemptions granted by the DOL within the previous five years, applicants may cite one individual exemption granted within the past 10 years and a transaction "authorized" under the EXPRO exemption within the past five years.

EXPRO has reduced significantly the number of individual exemptions relating to routine transactions, thus allowing applicants to receive exemptions in a more timely fashion and often saving them the cost of going through the more formal process for exemptions.