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Release Date: 09/02/2003
Release Number: 03-465
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Washington, DC - The U.S. Department of Labor’s
Employee Benefits Security Administration (EBSA) today proposed amendments
to update a widely used class exemption available to plans whose assets
are managed by qualified professional asset managers (QPAMs). |
The
department proposed the amendments to address concerns expressed by the
financial services industry that recent consolidation of the industry has
made it difficult to comply with conditions of the QPAM exemption for
monitoring corporate affiliates. The proposal would amend Prohibited
Transaction Exemption (PTE) 84-14 to ease compliance difficulties by
narrowing the restrictions on transactions with parties in interest that
have the power to invest a plan’s assets in a pooled fund managed by a
QPAM. This would allow plans to engage in transactions with a larger group
of related parties. |
“The
updated exemption will increase the investment opportunities available to
plans, allow greater efficiencies and lower costs,” said Ann L. Combs,
Assistant Secretary of EBSA. |
PTE
84-14 currently contains a general exemption and three limited exemptions
that allow 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 the safeguards of the exemption are met. QPAMs can
be banks, insurance companies, savings and loans and investment advisors
who are regulated by appropriate state or federal laws and meet certain
financial standards. The exemption is designed to ensure that the QPAM
maintains independence from other parties to transactions involving the
assets of plans under its management. The class exemption eliminates the
need to obtain an individual exemption on a case-by-case basis. |
The
proposed amendments to PTE 84-14 will be published in the Federal Register
on September 3, 2003. |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
