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transaction. Such a knowledge requirement is not
included in the tax provisions. This distinction
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2 Generally, the substitute defines a prohibited transaction as
the same type of transaction that constitutes prohibited self-
dealings with respect to private foundations, with differences
that are appropriate in the employee benefit area. As with the
private foundation rules, under the substitute, both direct and
indirect dealings of the proscribed type are prohibited.
conforms to the distinction in present law in the
private foundation provisions (where a foundation’s
manager generally is subject to a tax on self-dealing
if he acted with knowledge, but a disqualified person
is subject to tax without proof of knowledge). [Id. at
306-307, 1974-3 C.B. at 467.]
* * * * * * *
The substitute prohibits the direct or indirect
transfer of any plan income or asset to or for the
benefit of a party-in-interest. It also prohibits the
use of plan income or assets by or for the benefit of
any party-in-interest. As in other situations, this
prohibited transaction may occur even though there has
not been a transfer of money or property between the
plan and a party-in-interest. For example, securities
purchases or sales by a plan to manipulate the price of
the security to the advantage of a party-in-interest
constitutes a use by or for the benefit of a party-in-
interest of any assets of the plan. [Id. at 308, 1974-
3 C.B. at 469.]
* * * * * * *
The substitute also prohibits a fiduciary from
receiving consideration for his own personal account
from any party dealing with the plan in connection with
the transaction involving the income or assets of the
plan. This prevents, eg., “kickbacks” to a fiduciary.
In addition, the labor provisions (but not the tax
provisions) prohibit a fiduciary from acting in any
transaction involving the plan on behalf of a person
(or representing a party) whose interests are adverse
to the interest of the plan or of its participants or
beneficiaries. This prevents a fiduciary from being
put in a position where he has dual loyalties, and,
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