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EBSA News Release: [08/22/2005]
Contact Name: David James or Gloria Della
Phone Number: (202) 693-4676 or x8664
Release Number: 05-1600-NAT
Labor Department Finalizes
Qualified Professional Asset Manager Exemption
WASHINGTON — 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 Aug. 23, 2005.
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