DOL Final Amendment to the QPAM Exemption: Key Provisions and Challenges for Sponsors and Asset Managers

BARBRI

This CLE webinar will provide employee benefits counsel and advisers an in-depth analysis of the final amendment to the qualified professional asset manager (QPAM) exemption under ERISA. The panel will discuss key provisions impacting plan sponsors and asset managers, reporting and record keeping requirements, eligibility criteria, conduct that would result in ineligibility and process for requesting an individual prohibited transaction exemption, and other key issues stemming from the final amendment to the QPAM exemption.

Description

On Apr. 3, 2024, the DOL issued the final amendment to the QPAM prohibited transaction class exemption, effective June 17, 2024. The final QPAM amendment includes strict requirements and compliance obligations for investment managers seeking to qualify for the exemption in addition to an expansion of conduct that will be considered "prohibited misconduct" under the rules.

According to the DOL, these amendments were necessary to align with the substantial changes that have occurred in the financial services industry since the inception of the QPAM Exemption back in 1984. These changes have significant implications for fiduciaries of retirement plans subject to ERISA that engage QPAMs.

Fiduciaries and employee benefits counsel must recognize and understand critical provisions under the final amendments to the QPAM exemption, such as the (1) expansion of what is considered to be prohibited misconduct and restrictions on anyone with certain criminal convictions; (2) limitations regarding the transition period if an investment manager ceased to qualify as a QPAM; and (3) a new requirement that QPAMs register with the DOL.

Listen as our panel discusses key provisions impacting plan sponsors and asset managers, reporting and record keeping requirements, eligibility criteria, conduct that would result in ineligibility, the process for requesting an individual prohibited transaction exemption, and other key issues stemming from the final amendment to the QPAM exemption.

Outline

1. Background of QPAM exemption
2. DOL final amendment to QPAM exemption
3. Recognizing "prohibited misconduct" in light of the amendment
4. Claiming the QPAM exemption
5. Next steps for plan sponsors and investment managers

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