ERISA-DOL Adopts Amendment To Class Exemption Involving Qualified Professional Asset Managers

According to a News Release, the Department of Labor (“DOL”) has adopted an amendment to Prohibited Transaction Exemption (“PTE”) 84-14, which allows a QPAM to manage the assets of a plan it sponsors.

The News Release says that PTE84-14 allows plans whose assets are managed by a QPAM to engage in a variety of transactions otherwise prohibited by ERISA, provided that certain safeguards have been met. Banks, insurance companies, savings and loan associations, and investment advisors who meet certain regulatory and financial standards are eligible to serve as QPAMs under the amended exemption. The amendment to PTE 84-14 allows the QPAM to manage the assets of a plan it sponsors, so long as, among other things:

–The QPAM adopts policies and procedures designed to assure compliance with the conditions of the exemption; and
–An independent auditor conducts an annual exemption audit, which is designed to ensure that the conditions of the class exemption have been met.

Posted in:
Updated:

Comments are closed.