The U.S. Department of Labor recently published in the Federal Register its finalized amendments to the qualified professional asset manager (QPAM) class prohibited transaction exemption. While initial impressions focused on favorable changes that should lessen the immediate compliance burden—a deeper review shows that the Final Amendments still raise significant issues for asset managers, regardless of whether they currently serve as QPAMs or not.
Beyond this focus on crimes and misconduct, the DOL has also revised the requirements regarding the QPAM’s role in overseeing transactions, and added new notification, recordkeeping, and size requirements that are expected have widespread impact on asset managers seeking to utilize the exemption or to reserve the ability to use the exemption, if needed.
While the Final Amendments address certain concerns that were raised by stakeholders during the notice-and-comment process, many questions and challenges remain. A Law360 article focuses on seven key practical impacts that the Final Amendments will have on asset managers.
The article was authored by Joshua Lichtenstein, ERISA and benefits partner who heads the firm’s ERISA fiduciary practice, ERISA fiduciary and employee benefits partner Sharon Remmer, ERISA fiduciary and employee benefits associates Jonathan Reinstein and Alexa Voskerichian.
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