DOL Proposes Amending QPAM Exemption

The Department of Labor ("DOL") recently proposed an amendment (the "Proposed Amendment") to Prohibited Transaction Class Exemption 84-14 (the "QPAM Exemption"). The Proposed Amendment would -

• modify and expand the QPAM Exemptions' ineligibility provisions by clarifying that disqualifying crimes include foreign convictions and by adding new circumstances that would trigger disqualification;
• require a notice to the DOL of an entity's reliance on the QPAM Exemption;
• require that all qualified professional asset managers ("QPAMs") amend their plan or IRA agreements to provide certain indemnification rights in the event of the QPAM's ineligibility;
• raise the assets under management, capitalization, and net worth requirements for a QPAM; and