DOL Releases Final Amendment To The QPAM Exemption

On April 3, 2024, the U.S. Department of Labor (DOL) published a final amendment (Final Amendment) to Prohibited Transaction Class Exemption 84-14 (QPAM Exemption), the widely used exemption from the prohibited transaction rules under the Employee Retirement Security Act of 1974, as amended (ERISA), and the Internal Revenue Code of 1986, as amended, for transactions involving ERISA covered plans and individual retirement accounts (collectively, Plans) managed by a qualified professional asset manager (QPAM).

While the Final Amendment does not include some changes in the proposed amendment issued by the DOL in July 2022 (the Proposal) (see our prior Advisory), it expands the circumstances for QPAM Exemption ineligibility, provides for a transition period for QPAMs that lose eligibility, requires QPAMs to register with the DOL, and increases asset and equity thresholds necessary for QPAM qualifications.