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Washington, DC - The U.S. Department of
Labor’s Employee Benefits Security Administration (EBSA) today adopted
final amendments to update financial standards and streamline
record-keeping requirements of a widely used class exemption available
with respect to plans whose assets are managed by qualified professional
asset managers (QPAMs).
“We have updated the exemption to increase the
investment opportunities available to plans, allow greater efficiencies
and lower costs,” said Ann L. Combs, assistant secretary of EBSA. “The
revised rules will eliminate unnecessary barriers to plan investments in
the financial marketplace.”
The department proposed the amendments in 2003.
Prohibited Transaction Exemption 84-14 allows plans whose assets are
managed by a QPAM to engage in a variety of transactions otherwise
prohibited by the Employee Retirement Income Security Act, provided
certain safeguards are met. Banks, insurance companies, savings and loans
and investment advisors who are regulated by appropriate state or federal
laws and meet certain financial standards are eligible to serve as QPAMs.
A separate amendment also was proposed to the class
exemption that would allow in-house QPAMs to manage the assets of their
own plans subject to additional safeguard to protect workers’ benefits.
The final amendments and proposed amendment to PTE
84-14 will be published in the Federal Register on August 23, 2005. |
