On Aug. 13, FDIC reported on DoL QPAM exemption amendment.
FDIC reported on DoL qualified professional asset manager (QPAM) exemption.
Follows DoL Apr. 2024 final amendment to QPAM exemption, fact sheet, see #207121.
QPAM Exemption
DoL amended prohibited transaction class exemption rule for QPAM exemptions.
Provided broad relief for employee benefit plan and individual retirement account transactions prohibited by ERISA as long as the transactions involve a QPAM.
Under prior rule, QPAMs did not need to notify the DOL if relying on the exemption.
A one-time notice to DoL now required in order to continue to rely on the exemption.
Each QPAM that relies on the exemption must report its legal name (and any name the QPAM may be operating under) by email to the DOL within an initial 90-day period.
Institutions must meet the adjusted QPAM asset management and equity thresholds, which will phase in through incremental changes throughout 2024, 2027, and 2030.
Must also become familiar with the expanded list of types of misconduct under rule.
Gain knowledge of entities that may cause ineligibility for the QPAM exemption.
Maintain records for six years demonstrating compliance with this exemption.
Also must request any individual exemptions in case a bank does become ineligible.
Effectiveness
Banks have until Sep. 15, 2024, to notify DoL of intent to rely upon the exemption.
