iOn April 3, 2024, the Department of Labor (DOL) published in the Federal Register long-awaited final amendments to Prohibited Transaction Class Exemption 84-14 (the Amendment), also known as the Qualified Professional Asset Management (QPAM)1 exemption (the Exemption).2 The Amendment (i) imposes new notice and reporting requirements and increased financial thresholds, as conditions to relying on the Exemption; (ii) reiterates the DOL’s view that QPAMs must be independent and have sole discretionary authority with respect to transactions covered by the Exemption; and (iii) modifies Section I(g) of the Exemption, a provision under which a QPAM may become ineligible to rely upon the Exemption for a period of 10 years if the QPAM, various affiliates, or 5% or more owners of the QPAM are convicted of certain crimes and engage in certain prohibited misconduct. The Amendment is effective June 17, 2024 (Effective Date).
DOL Makes Significant Changes to QPAM Exemption
Wednesday, May 15, 2024
1 A QPAM is defined in Part VI of PTE 84-14 as a bank, savings and loan association, insurance company, or SEC-registered investment adviser that meets specified asset and equity thresholds set forth in the Exemption and acknowledges in a Written Management Agreement that it is a fiduciary with respect to each of its clients.
